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How Warmer Winters Affect Producers

As the prairies experience a warmer than usual winter, our producers are seeing some positive effects. Farm production extension specialist Shawn Cabak outlines the changes a warmer winter associated with climate change provides.
 
"Some of the weather trends that we're seeing across the prairies are less snowfall, warmer winters, a little more precipitation, and summer temperatures staying similar. Now, when we look at increase in greenhouse gases such as CO2, that's a benefit to crop production. Crops require CO2 for growth. With some of the warmer temperatures we might see higher yielding crops grown, such as corn and soy beans."
 
Cabak notes it could lead to more farmland.
 
"We could see a northward push and expansion of suitable cropping area, improved water-use efficiency because of higher CO2. So, there are a lot of benefits to climate change. There are also some negatives. We could see more severe droughts; we could see poorer rainfall distribution; we might have more pests, because colder weather actually is beneficial for insect disease and weed control."
 
Source : SteinbachOnline

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U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again

Video: U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again


The market was hoping for a US-China trade deal, but we got a trade “truce” for now from the keenly awaited Trump-Xi meeting at the APEC Summit.
China commits to minimum purchase commitments of 12 MMT of U.S. soybeans during the “current season” and a minimum of 25 MMT annually through 2028.
U.S. Treasury Sec Bessent said other Asian countries have agreed to buy additional 19 MMT of US soybean.
Soybean futures trading above $11 now- they normally tend to rally to $12.
As expected, US Fed cuts interest rates by -0.25% again in October to 3.75%–4.00%. No further cuts promised for this year but trade looking out to the Dec FOMC.
The Bank of Canada cut interest rates to 2.25% but raised concern over trade war damage.
Soy meal futures, remarkably, have had 14 consecutive higher close sessions. A bull market in soybeans is a bull market in soy meal!
Cattle futures lower as funds unwind out of cattle for now due to Trump headlines and objective to lower beef prices.
All major stock indices climb to new record highs. It was Mag 7 reporting week, which had mixed results. But we now have the first $5 trillion company in Nvidia!