Ritz returns from trade talks with Russia and Kazakhstan

May 23, 2013

Ritz returns from trade talks with Russia and Kazakhstan

Agriculture Minister promotes Canadian livestock on trade mission

Agriculture Minister Gerry Ritz has returned from an agriculture trade mission in Russia and Kazakhstan, where he sought to enhance market opportunities for Canada’s livestock industry.

Minister Ritz helped secure commercial contracts with two Manitoba-based companies in Russia – Genesus securing an $8 million contract for breeding swine and in Kazakhstan – Xports International reaching a deal to sell $3 million worth of Canadian purebred cattle.

In addition to witnessing commercial contract signings, Ritz advocated for beef and hog producers reaffirming Canada’s opposition to Russia’s ban on ractopamine – a feed additive which the Russians deem unsafe despite a number of international regulatory agencies recognizing it as safe. The Russian government agreed to send its own veterinarians to Canada to visit some meat facilities.

In a press release, Minister Ritz said that his government will continue to advocate for science-based import requirements and assisting livestock producers grow export market opportunities in Russia and Kazakhstan.

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.