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Canada Grains Council applauds the Canadian Government’s leadership in finding trade facilitative solutions that support innovation

Ottawa, ON — The Canada Grains Council President, Tyler Bjornson released the following statement applauding the Government of Canada on recent progress to combat non-tariff trade barriers.
 
“The members of the Canada Grains Council commend the Government of Canada on a series of important trade facilitating milestones that together contribute to a more open trading environment for Canada’s grain sector and help to reduce non-tariff trade barriers.
 
“Non-tariff barriers pose the biggest threat to the grain sector’s ability to access key markets abroad. While free trade agreements (FTAs) have been tremendously useful at reducing tariff barriers, historically they have not addressed serious non-tariff barriers such as those created by misaligned policies and regulations around approvals of pesticides and seed varieties. We commend the Government of Canada for continuing to spearhead initiatives that address these barriers.
 
“In recent weeks, Canada has moved swiftly to ratify the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), securing tariff free access into some of the world’s most prosperous and fastest growing markets. In addition, Canada has also forged a deal with the United States and Mexico to replace the North American Free Trade Agreement. These two deals are important, not just for the commitment to reduce and eliminate tariffs but also because these FTAs contain language that deal with the more serious threats of non-tariff barriers.
 
"The new United States Mexico Canada Agreement (USMCA) for example, makes progress towards reducing asynchronous approvals of biotechnology. The agreement also contains stronger language around dealing with low level presence (LLP) of genetically modified grain by compelling countries to deal with any occurrences without unnecessary delay.
 
“Likewise, the CPTPP contains important language on regulatory harmonization. Specifically, the deal encourages science-based approval processes for biotechnology products. In addition, the text sets out a process to minimize the impact of LLP occurrences.
 
“The Government of Canada is also demonstrating its willingness to work to address non-tariff barriers outside of FTAs. Canada recently joined 13 trading partners in supporting a joint international statement on Agricultural Applications of Precision Biotechnology. This statement, released at the World Trade Organization (WTO) Committee on the Application of Sanitary and Phytosanitary Measures, aims to prevent regulatory misalignment and trade disruptions. Precision biotechnology will be increasingly important as a tool to aid growers in feeding an expanding world population by allowing them to address environmental challenges, pest and disease pressures, and changing consumer preferences in a sustainable way.
 
“In the past, free trade agreements have been very good at committing governments to incrementally reduce tariffs, but far less effective at getting at the root of non-tariff barriers which are not only covert but far more damaging to the agricultural sector. The Canada Grains Council is encouraged to see the Government of Canada and trading partners engaged in finding new ways to facilitate solutions that will support growth in innovation.”
Source : Canada Grains Council

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Agricultural Market Update: Grain Prices, Crop Conditions, and Weather Impacts

Welcome back to our channel where we provide comprehensive updates on the latest trends and changes in the agricultural sector. This week, we're looking at significant movements in grain prices, crop conditions, and the effects of weather patterns. Let's dive into the details:

Grain Price Decline Grain prices have fallen to their lowest levels since 2020, with December corn down 4.3% and November soybeans losing 3.1%. This decline is partly due to the beneficial moisture brought by Hurricane Beryl to the Midwest, which has improved crop conditions significantly. The USDA reported that corn and soybean crops are in their best condition in four years, contributing to the downward pressure on prices.

Record Short Positions and Market Sentiment Fund traders have increased their net short positions in the corn market to a record level, with a net short of 347,000 contracts of corn. This reflects a bearish sentiment in the market, further influencing grain price dynamics. Similar selling trends were observed in soybeans and SRW wheat, indicating broad market caution.

Weather Impact and Forecast Hurricane Beryl has brought significant rainfall across Arkansas, Missouri, western Tennessee, western Kentucky, and southern Illinois, with more expected over Missouri, Illinois, and Indiana in the coming days. Despite this, the market is currently more focused on the moisture benefits rather than potential heat risks forecasted in the 6-10 and 8-14 day periods.

US Crop Conditions Corn and soybean conditions have shown slight improvements last week, with corn rated 68% good to excellent and soybeans at 68%. These are among the best ratings for this time of year since 2020, suggesting robust crop health that could continue to influence grain prices.

Winter Wheat Harvest and Spring Wheat Conditions The US winter wheat harvest is progressing well, ahead of schedule with significant portions already harvested in Kansas and Texas. Spring wheat conditions are also favorable, with 75% rated good to excellent, although there have been some declines in states like Idaho, South Dakota, and Washington. Brazil's Corn Harvest and US Exports Brazil's second corn crop harvest is advancing rapidly due to favorable hot and dry conditions, with 63% of the crop already harvested. Meanwhile, US corn shipments saw a substantial increase last week, indicating strong export demand, which contrasts with the recent drop in domestic grain prices.

Ongoing Developments Lastly, the USDA reported a flash sale of corn, with significant quantities sold to unknown destinations, scheduled for delivery over the next two marketing years. This could signal ongoing international demand for US corn despite lower prices.

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