Economic headwinds could mean export cuts are a trend of the future

Oct 18, 2022

The USDA released its October WASDE report last week.

Dan Basse with Ag Resource Company says the surprise of the report was the decline in soybean yields under 50 bushels per acre and a smaller-than-expected drop in corn.

He notes the drop in soybean yield was not expected, and down a little lower than what traders were looking for.

"The USDA also cut combined corn, soybean, and wheat demand by 215 million bushels. Maybe that's the bigger story because, after the USDA report, the market rallied slightly, but has been declining since. I think amid the world that is showing economic headwinds, that indeed the export cut is maybe a trend of the future."

He notes with the drought in the U-S FOB (free on board) costs for US corn, soybeans and wheat have climbed.

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Video: Why Invest in Canada’s Seed Future? | On The Brink: Episode 3

Darcy Unger just invested millions to build a brand-new seed plant on his farm in Stonewall, Manitoba so when it’s time for his sons to take over, they have the tools they need to succeed.

Right now, 95% of the genetics they’ll be growing come from Canadian plant breeders.

That number matters.

When fusarium hit Western Canada in the late 90s, it was Canadian breeders who responded, because they understood Canadian conditions. That ability to react quickly to what’s happening on Canadian farms is exactly what’s at risk when breeding programs lose funding.

For farmers like Darcy, who have made generational investments based on the assumption that better genetics will keep coming, the stakes are direct and personal.

We’re on the brink of decisions that will shape our agricultural future for not only our generation, but also the ones to come.

What direction will we choose?

On The Brink is a year-long video series traveling across Canada to meet the researchers, breeders, farmers, seed companies, and policymakers shaping the future of Canadian plant breeding. Each week, a new story. Each story, a piece of the bigger picture.

Episode 3 is above. Follow Seed World Canada to catch every episode, and tell us: Do you think the next generation will have the tools they need to success when they takeover? How is the future going to look?