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PRICE TIP: Watch Eastern markets and southern price

One of the most startling things about 2022, is the number of severe droughts in the world.  Look at a world drought map and you’ll see that significant portions of the U.S. south west, nearly all of Europe, and the Oinghai and Gansu regions of China have all suffered from a noteworthy lack of rain. Crop yields are certain to be reduced.

Weather problems for other people is generally considered to be good news for farmers hoping to see commodity prices rise, and the fact that this year’s droughts have occurred in areas with substantial agricultural production, and relatively wealthy populations, suggest that there is a high likelihood that markets will react.  The question that Ontario farmers need to wrestle with is not if prices can remain strong through this fall and winter, but rather how to set reasonable and realistic targets for crops as this market unfolds.

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