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2019 Volatile Year In Agriculture

The Chief Agricultural Economist with Farm Credit Canada (FCC) says 2019 was a very volatile, uncertain year.
 
JP Gervais says two things really stand out for the agriculture sector, trade and weather.
 
He notes China’s ban on canola seed shipments from two of our biggest exporters is still an issue.
 
"That really was a major, major event. We had canola prices that really started to somewhat decline at the end of 2018, going into early 2019 but certainly that brought canola prices even further down with the ban of canola seed going to China. So that's one thing that stood out for sure and then in the summer we had also another ban with regards to our Canadian pork and beef exports."
 
Beef and pork exports to China have since been lifted with the product slowly starting to move again.
 
Gervais believes that China will have to look at rationing their meat supply as African Swine Fever has really impacted their pork supply.
 
"We’ve seen retail prices in China jump really high,  over 100% for pork, there's a lot of inflation for beef and chicken as well.  So, on the protein side I think the 2020 story is going to be interesting as well.  It started out in 2019 with how we position the demand for protein.  2020 is going to be really interesting because there's going to be a really big gap."
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Increased Geo Political Tensions = SELL AMERICA TRADE + Argentina Dry

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Higher geo-politics from Trump wanting to annex Greenlland to conflict with Iran has caused investors to sell everything America. With Matto Grosso Brazil 7% harvested weather has turned wet as harvest progresses but Argentina has turned dry! Both soybean and wheat futures have traded back above the pre-USDA January crop report close a positive technical chart signal. A monster weekly U.S. export report is price supportive but a kick the can down the road on E15 is very disappointing.