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Oh Well -- Musk says in response to Premier Ford cancelling contracts

Oh Well -- Musk says in response to Premier Ford cancelling contracts
Feb 03, 2025
By Denise Faguy
Assistant Editor, North American Content, Farms.com

Ford threatened to ban American companies from provincial contracts

Monday was an interesting day in US and American politics.

Ontario Premier Doug Ford announced on Monday that he would be banning American companies from provincial contracts.

Premier Ford said that a deal he had previously signed with Elon Musk’s company Starlink in November 2024, worth $100-million Canadian ($68 million US), to deliver high-speed internet to 15,000 remote residents in rural and northern Ontario would be cancelled.

“We’ll be ripping up the province’s contract with Starlink. Ontario won’t do business with people hellbent on destroying our economy,” Ford said.

Ford said that U.S.-based businesses would lose out on “tens of billions of dollars” in new revenue as a result of Ontario’s response. “We just aren’t going to be using American companies."

“And no matter if we are building a hospital, if we’re building anything, if we’re building a doghouse I want to make sure we are using Ontario steel, Canadian products, Canadian wood, Ontario wood, anything,” Ford  proclaimed.

Ford said Ontario had not “paid a penny” to Starlink and stated that if Musk takes the province to court over the cancellation of the deal, his government is prepared.

Musk’s response on his platform X was “Oh well”.


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Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?

Video: Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?


Historically, the USDA December crop report is a non-event or another dud report as the USDA reserves any final supply changes to the final report in January of the following year in this case 2026. But after the longest U.S. government shutdown in history at 43 days and no October crop report will they provide more data/surprise and make an exception?
Our China U.S. soybean purchase tracker is now at 26.6% or a total of 3.2 mmt but for traders it’s taking too long to unfold.
The final Stats Canada production report was bearish canola and wheat projection a record crop in both (it adds to the global glut of supplies) and bullish local corn and soybean prices in Ontario/Quebec thanks to a drought. It will not help the fund flow short-term, the USDA may need to offset it?
A U.S. Fed interest rate cut of another 25-basis point next Wednesday (probability 87.1%) could help fund flow and sentiment in stock and ag commodities into year end.
More inflows into Bitcoin this past week saw prices rebound back above 90,000 with support at 82,000 and resistance at 96,000.
A V-shaped bottom in cattle suggest the lows are in after Mexico reported another new world screwworm case. Lower weights, seasonal demand and higher U.S. beef select/choice values with a continued closure of the Mexican border to cattle will result in a resumption of higher cattle futures into yearend.
Australia is expected to produce its 3rd largest wheat crop ever at 36 mmt adding to the global glut of supplies.
Reports of ASF in hogs in Spain the largest pork exporter in Europe could see the U.S. win more pork export business long-term.
If the rains verify into next week of 3-5 inches for Brazil it would go a long way to fixing the dry regions from the last 2-months, but the European weather model has been wrong for the past 2-months!
Natural gas futures are surging to the 3rd price count as frigid hold temps set in.
CDN $ is also surging to end the week on a very resilient economy and better employment numbers suggesting no interest rate cuts next week.
Finally, the CFTC report showed funds were net buyers of soybeans but sellers of corn, canola and wheat. In real time the funds have gone back to selling as they take some profits.