CFA Says Strategic Investments in Agri-Food Sector Would Benefit All Canadians

Sep 30, 2016

CFA's Director of Business Risk Management, Scott Ross, discussed with MPs a range of ideas and recommendations that would position the agricultural sector as a strategic industry through which Canada could make progress on many government priorities, such as trade, economic growth and climate change mitigation and adaptation.

"With Canada's small domestic population, vast natural resources, and highly competitive producers, the agriculture industry is uniquely positioned to seize on opportunities arising from a growing global middle class, a world population expected to surpass nine billion by 2050, and a domestic consumer base seeking increasingly diverse Canadian products," said Ross. "Farmers play a key role in laying the groundwork for a sustainable future for Canada, one that benefits both rural and urban communities." CFA recommended that the 2017 federal budget include provisions that:

Create a tax policy environment that is conducive to sustainable growth for family farms and that creates opportunities for new entrants to farming
Support the development and adoption of clean technology and invest in agricultural innovation
Establish a broad-based market access and infrastructure strategy to capitalize on emerging market opportunities in Canadian agriculture
Modernize Canada's internal trade system

These recommendations would help the agricultural sector continue to grow and position Canada as a world leader in innovative and sustainable agricultural practices. When combined with other initiatives and programs, these investments would help Canada meet the ever-growing demand for food both within and outside of our borders.

In addition, CFA's Rural Policy Committee submitted another set of recommendations focused on strengthening agriculture's role as a key contributor to rural Canada, such as the need to build the sector's human resources capacity and address shortages in our agriculture and agri-food workforce.

Source: Meatbusiness

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.