Health Canada responds to baby formula shortage, PEI's alternative crops for cash program, and more

May 23, 2022

The week will soon be coming to a close and if you’re looking to catch up on the latest in Canadian food news, you’ve come to the right place.

From a Health Canada update on the North American baby formula shortage to a P.E.I. potato proposition that could potentially help Island farmers find a new source of income, here are five food stories you might have missed this week.

After last week’s baby formula shortage continued into this week, Health Canada confirmed that it has begun working with manufacturers to expedite product importation wherever possible. Until the crisis comes under control, Health Canada is advising against using homemade formulas or substitutes such as cow’s milk, goat’s milk, and evaporated milk.

Health Canada has also said that parents should avoid buying in bulk and should not buy products from unknown sources.
Following a recent announcement from P.E.I.’s agriculture minister that there will be no exports of Island seed potatoes until at least next year, the province recently proposed that farmers who are unable to export their potatoes convert to alternative crops until next season.

Those who are able to qualify will receive $1,000 per acre, which the province hopes will help keep farmers afloat while also sustaining the farms for future harvests.

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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.