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KAP Says $252 Million For Farmers A Good Start

The following statement (May 5) is attributable to Keystone Agricultural Producers (KAP) President Bill Campbell:
 
“Today, the federal government announced $252M in new funding for the agriculture industry across this country. For the first time since this pandemic started two months ago, we have seen a measure of progress and support from Ottawa in terms of business risk management programming.
 
Producers across Manitoba and Canada continue to feel enormous pressure due to COVID-19. Beef and pork producers have seen their markets disrupted because of facility closures in other jurisdictions and potato producers have seen demand crater due to restaurant closures.
 
Additional money in the AgriRecovery program is a good start however the federal government can only provide 60% funding into the program. We need the provincial government to step up with their portion of the funding, which amounts to 40%. Reduced livestock price insurance premiums for cattle producers and crop insurance premiums for potato producers are required as well.
 
Business risk management programming needs to work better for Manitoba and Canadian farmers. KAP members have been clear on this issue since well before the pandemic started and now is the time to get stakeholders together to fix these programs so they are bankable, simple, equitable to all commodities, and predictable.
 
As we have said previously, there is no better time for us to work together towards larger scale improvements for the next policy framework and build on the programs and supporting administration that what we have now to make it through.”
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Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?

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.