To and fro: A year of grains in review

The 2012/13 marketing year was the first of its kind in Canada where producers in the Prairies were able to freely market their own grain.

The 2012/13 marketing year was the first of its kind in Canada where producers in the Prairies were able to freely market their own grain. It’s undeniable that a drought in the Black Sea region of Europe (Ukraine, Russia, etc.) and the U.S. supported prices throughout the first three-to-five months of 2013, as producers took advantage of $10 wheat and even $15 canola. However, despite the extended winter and subsequent wet spring, the 2013 crop went into the ground across North America in record speed (If this isn’t telling of the technology we have at our disposal, then I’m not sure what is). That being said, what was produced was also a record (not just North America but globally) and prices have since fallen off the enjoyable perches seen at this time a year ago.

Around the time we were seeding, on the other side of the equator, South America was still in the process of trying to ship out their record crop of corn and soybeans. Brazil went head-to-head with the U.S. for top soybean-producing nation as both countries took off over 82 million tonnes of the oilseed (America took the win by a debatable 500,000 tonnes). Problems came in shiploads though (literally) as Brazil faced significant logistical issues of getting their crop from field to port. Poor road conditions, dock worker strikes, and waiting lines of over three months in the seas outside main ports kept Brazil’s biggest customer, China, on its toes. However, China seems to be turning the tide back to more normalized growth rates (at least for them). As the world’s largest consumer of commodities, their rapidly growing middle class (around 350 million people), has brought about an insatiable demand for meat. As such, grain imports by the People’s Republic are all seen up in the 2013/14 marketing year, especially for soybeans, up over 15 per cent to almost 70 million tonnes!

Ultimately, the U.S.D.A. sees crop production in 2013/14 much larger than the year previous (again, due to drier weather seen in a few places). Specifically, soybean production is seen growing almost six per cent to 283.9 million tonnes with another record crop expected out of Brazil (U.S.D.A. forecasts 88 million tonnes but the majority of private estimates are around 90 million). For corn, production is seen growing 11.75 per cent to 964.3 million tonnes, with Ukraine poking its head in as a major player, producing 30 million tonnes and becoming the world’s third-largest exporter of the coarse grain. Finally for wheat, global output jumped 8.4 per cent to 711.4 million tonnes, mostly due to higher production in Australia (18 per cent year-over-year production growth), Russia (36.5 per cent), Ukraine (40 per cent), & Canada (38 per cent).

With the 2013 calendar turning over, it was a year of big production. Undoubtedly, improvements in agronomy practices, equipment advancements, and new tools (such as the FarmLead Mobile app), have provided the individual producer the tools to be more efficient and smarter when it comes to working the land. Watch for the likes of South America, the Black Sea, and China to dominate headlines in 2014 as these are the largest emerging markets in the agricultural industry (the former two regions for production and the latter for consumption just as food security is becoming more important than ever when it comes to the People’s Republic).

Brennan Turner is originally from Foam Lake, SK, where his family started farming the land in the 1920s. After completing his degree in economics from Yale University and then playing some pro hockey, Mr. Turner spent some time working in finance before starting FarmLead.com, a risk-free, transparent online and mobile grain marketplace (app available for iOS & Android). His column is a summary of his free, daily market note, the FarmLead Breakfast Brief. He can be reached via email (b.turner@farmlead.com) or phone (1-855-332-7653).

— FarmLead Breakfast Brief

 

Just Posted

(File photo from The Canadian Press)
Red Deer down to 66 active COVID-19 cases

Red Deer has lowest number of active cases since last November

Orange shirts, shoes, flowers and messages are displayed on the steps outside the legislature in Victoria, B.C., on Tuesday, June 8, 2021 following a ceremony hosted by the Songhees and Esquimalt First Nations in honour of the 215 residential school children whose remains have been discovered buried near the facility in Kamloops, B.C. THE CANADIAN PRESS/Chad Hipolito
Alberta city cancels Canada Day fireworks at site of former residential school

City of St. Albert says that the are where the display was planned, is the site of the former Youville Residential School

FILE – Perry Bellegarde, National Chief of the Assembly of First Nations, takes part in an event on Parliament Hill in Ottawa on Tuesday, July 7, 2020. THE CANADIAN PRESS/Sean Kilpatrick
Indigenous Peoples Day must be a ‘call to action’, says Assembly of First Nations chief

Discovery of children at Kamloops residential school site must lead to change, Perry Bellegarde says

The Government of Alberta identified 115 new COVID-19 cases Sunday, bringing the provincial total to 3,089.
(Black Press file photo)
Alberta reports 100 new cases of COVID-19

The Central zone sits at 218 active cases

The Government of Alberta identified 115 new COVID-19 cases Sunday, bringing the provincial total to 3,089.
(Black Press file photo)
Red Deer drops to 71 active cases of COVID-19

Province adds 127 new cases of the virus

The border crossing into the United States is seen during the COVID-19 pandemic in Lacolle, Que. on February 12, 2021. THE CANADIAN PRESS/Paul Chiasson
VIDEO: Border quarantine to soon lift for fully vaccinated Canadians

Eligible travellers must still take multiple COVID-19 tests

Air Canada planes sit on the tarmac at Pearson International Airport during the COVID-19 pandemic in Toronto on Wednesday, April 28, 2021. THE CANADIAN PRESS/Nathan Denette
Pilots say no reason to continue quarantines for vaccinated international travellers

Prime minister says Canada still trying to limit number of incoming tourists

Fans watch the warm-up before Game 6 between the Toronto Maple Leafs and the Montreal Canadiens in NHL playoff hockey action Saturday, May 29, 2021 in Montreal. Quebec’s easing of COVID-19 restrictions will allow 2,500 fans to attend the game for the first time in fourteen months. THE CANADIAN PRESS/Ryan Remiorz
Two-thirds of Canadians say governments shouldn’t lift all COVID-19 restrictions

Poll reports Canadians who gained pandemic weight say they have gained 16 pounds on average

Paul Bernardo is shown in this courtroom sketch during Ontario court proceedings via video link in Napanee, Ont., on October 5, 2018. Teen killer and serial rapist Paul Bernardo is set for a parole hearing today. The designated dangerous offender, has been eligible for full parole for more than three years. Bernardo’s horrific crimes in the 1980s and early 1990s include for kidnapping, torturing and killing Kristen French and Leslie Mahaffy near St. Catharines, Ont. THE CANADIAN PRESS/Greg Banning
Killer rapist Paul Bernardo faces parole hearing today; victim families opposed

Designated dangerous offender has been eligible for full parole for more than three years.

People look over the damage after a tornado touched down in Mascouche, Que., north of Montreal, Monday, June 21, 2021. Dozens of homes were damaged and one death has been confirmed. THE CANADIAN PRESS/Ryan Remiorz
One dead and extensive damage as tornado hits Mascouche, Que., north of Montreal

Damage reported in several parts of the city, and emergency teams dispatched to sectors hardest hit

FILE - In this Nov. 29, 2020, file photo, Las Vegas Raiders defensive end Carl Nassib leaves the field after an NFL football game against the Atlanta Falcons in Atlanta. Nassib on Monday, June 21, 2021, became the first active NFL player to come out as gay. Nassib announced the news on Instagram, saying he was not doing it for the attention but because “I just think that representation and visibility are so important.” (AP Photo/John Bazemore, File)
Nassib becomes first active NFL player to come out as gay

More than a dozen NFL players have come out as gay after their careers were over

A pair of Alberta residents were arrested after police responded to a report of a woman who had allegedly been assaulted and confined against her will on June 20, 2021. (File photo)
Salmon Arm RCMP arrest 2 Albertans suspected in alleged assault, unlawful confinement

Firearms, stolen items seized including NHL hockey cards believed to be worth thousands

A man makes his way past signage to a mass COVID-19 vaccination centre at the University of Toronto’s Mississauga campus during the COVID-19 pandemic in Mississauga, Ont., on Monday, May 17, 2021. THE CANADIAN PRESS/Nathan Denette
Canadians encouraged to see mRNA shots as interchangeable as more 2nd doses open up

Doctors urge people not to hesitate if offered Moderna after getting Pfizer for their first shot

Chief of Defence Staff Jonathan Vance sits in the front row during a news conference in Ottawa on June 26, 2020. THE CANADIAN PRESS/Adrian Wyld
Defence committee rises without report on Vance allegations

Committee had been investigating the government’s handling of complaints against former defence chief

Most Read