Team Alberta Meets With Provincial Transport And Ag Ministers

Sep 26, 2016

Last week representatives from Team Alberta met with provincial Transport Minister Brian Mason and Agriculture Minister Oneil Carlier to deliver producer-focused messaging that addresses the imbalance of accountability and market power in Canada’s grain transportation system. The meeting took place prior to a final consultation meeting of federal provincial territorial (FTP) transport ministers set to take place on September 28.

The September 28 FTP consultation meeting is a key step in concluding the Canada Transportation Act (CTA) review led by Federal Transportation Minister Marc Garneau, and an important opportunity for provincial representatives to advocate for the needs of Alberta’s cropping sector. The CTA review is expected to be tabled in late 2016.

“Throughout the consultation process farmers and industry members have been united in their concerns about railway market power,” said Kevin Auch, Alberta Wheat Commission Chair.

“We are confident that our government will support our position by emphasizing the imbalance of power within the grain supply chain. Improved grain transportation service through commercial means is imperative in order to continue growing and diversifying Alberta’s economy,” added Allison Ammeter, Chair of the Alberta Pulse Growers Commission.

Alberta’s economy has always been highly dependent on the rail transportation system to fulfill critical social needs and fuel economic growth. Agriculture represents one of Alberta’s major exports with total merchandise exports of $10 billion in 2015. Over 11 million tonnes of cropping sector commodities were exported from Alberta, almost completely by rail, and the demand for rail service is growing.

“Transportation remains a key concern to Albertan grain producers, and it is necessary to have proper mechanisms in place that provide shippers the ability to negotiate penalties and contract terms that are equal to those currently charged by the railways,” said Kevin Serfas, Regional Director with Alberta Canola Producers Commission.

“We need to create a competitive marketplace that allows growers to move grain in a predictable and efficient manner,” added Mike Ammeter, Chair of Alberta Barley.

Team Alberta promotes four key recommendations to ensure Alberta’s rail service will be more fair, predictable and efficient:

Service Level Agreements (SLA’s) that include mandatory financial consequences for failure to perform to binding contract terms. SLAs will ensure costs due to poor railway performance are not downloaded to farmers by shippers.
Retain the Maximum Revenue Entitlement (MRE) to protect producers against excessive rate increases, as freight costs are transferred to the producer by shippers.
Continuous improvement of interswitching, including the extended interswitching limits be made permanent and improved efficiencies are reviewed, such as increasing interchange capacities or extending limits to 250 kilometers to enable modern day train efficiencies.
Clearer definition of adequate and suitable. We believe that railways need to provide service according to the needs of their customers the way it would function a true commercial systems. This can be accomplished by adding a clear, demand based definition of “adequate and suitable” service in the Canada Transportation Act.

Source : Albertacanola

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.