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FCC Report Shows Canada Has Potential To Expand Market Opportunities

Farm Credit Canada’s Agricultural Export Report shows Canada exported $33.9 billion dollars of agricultural commodities in 2018.
 
The Report "Diversifying Canada's agriculture exports: Opportunities and challenges in Wheat, Canola, Soy and Pulses"  looks at where our exports are going and what potential we have to expand our markets.
 
FCC’s Chief Economist JP Gervais says when it comes to wheat Canada’s share in the world wheat market is at about 15%.
 
“There are some options to diversify further in the European markets for example. The good news there is that we have a trade agreement with Europe, that's about two or three years old.  We’re still you know working some of the issues there getting access to the European market, but I do believe that there's potential there to export more wheat to Europe than what we've done historically.”
 
He sees Egypt, Spain, Philippines, and the Netherlands as potential growth markets for Canadian Wheat. 
 
The report also shows Canadian pulses are exported to about 84% of all markets and Saskatchewan is a key player in that.
 
Gervais says our key importer in Pulses is India but there are other potential markets where we could increase our reach.
 
“Asia, again in Europe as well as some opportunities to diversify away from India, and sell a bit more pulses into Europe.  Sell some more pulses to some very specific destinations in Asia. There’s potential there to diversify, but we’re already quite diversified to begin with.”
 
Gervais says when it comes to Canola, Canada has always been the world’s largest exporter for human consumption.
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U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again

Video: U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again


The market was hoping for a US-China trade deal, but we got a trade “truce” for now from the keenly awaited Trump-Xi meeting at the APEC Summit.
China commits to minimum purchase commitments of 12 MMT of U.S. soybeans during the “current season” and a minimum of 25 MMT annually through 2028.
U.S. Treasury Sec Bessent said other Asian countries have agreed to buy additional 19 MMT of US soybean.
Soybean futures trading above $11 now- they normally tend to rally to $12.
As expected, US Fed cuts interest rates by -0.25% again in October to 3.75%–4.00%. No further cuts promised for this year but trade looking out to the Dec FOMC.
The Bank of Canada cut interest rates to 2.25% but raised concern over trade war damage.
Soy meal futures, remarkably, have had 14 consecutive higher close sessions. A bull market in soybeans is a bull market in soy meal!
Cattle futures lower as funds unwind out of cattle for now due to Trump headlines and objective to lower beef prices.
All major stock indices climb to new record highs. It was Mag 7 reporting week, which had mixed results. But we now have the first $5 trillion company in Nvidia!