CFA attends meeting with Ministers of Transport and Agriculture

Oct 21, 2016

Grain transportation is a key issue for farmers this harvest season

By Diego Flammini
Assistant Editor, North American Content
Farms.com

The Canadian Federation of Agriculture (CFA) was one of about 19 farm organizations that met with Minister of Transport Marc Garneau and Minister of Agriculture Lawrence MacAulay to discuss issues relating to grain transportation.

Farmers are concerned that with an extremely large crop on the horizon, there could be a bottlenecking when it comes to transporting grain.

CFA says the meeting was a good way to bring concerns to the forefront.

“We felt that the meeting was a good first step in strengthening relationships between Transport Canada and farm groups,” Ron Bennett, CFA president, said in a release. “Our views and concerns were made clear, and were echoed by a number of other western grain organizations also in attendance.”

Daniel Stein//iStock/Getty Images Plus

Some groups feel that when push comes to shove, farmers will be taken care of, as long as the railways do their part too.

“I don’t actually think it will be a problem,” Norm Hall, president of the Agricultural Producers Association of Saskatchewan, told CKOM. “CN is usually on time. CP is a concern because they’re usually aren’t on time. If CP isn’t moving the grain on time, it affects the bottom line for farmers.”

Ministers Garneau and MacAulay said they understand the importance of Canada’s grain sector and that reliable rail transportation helps farmers contribute to the economy.

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.