Impact of 2018 Manitoba Budget on Producers

Mar 13, 2018

The 2018 Manitoba provincial budget was released with only one major highlight for Manitoba producers. “The good news coming from this budget is a rise in the small business tax deduction from $450,000 to $500,000 - this will put Manitoba in line with the other Prairie provinces,” stated, William Pallister Manitoba Director.

The finance minister touted the provinces' record of attracting value-added processing in the ag sector – highlighting Roquette and Simplot expansions. The greater the amount of processing in the province and across Western Canada, the less reliant producers are on railways for transporting our goods. The Wheat Growers applaud the government's initiatives in this regard.

However, there is still uncertainty regarding the devastating carbon tax. The government is moving forward with implementing this tax by September of this year. While farming relies on energy to feed the world, this tax could be devastating as input prices will rise. “Why punish our industry that sequesters so much carbon with growing crops? The government has pledged to give back the carbon revenues in the form of tax deductions, but the effect this has on producers isn't clear,” closed Gunter Jochum, Manitoba Director.

Source : Western Canadian Wheat Growers Association

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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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