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Kainai Forage Welcomes Alberta's Premier, Minister of Indigenous Relations, Minister of Agriculture, and MLA Schow

STAND OFF, AB - Kainai Forage, LP ("Kainai Forage" or the "Company") located on the Kainai/Blood Tribe's Reserve, is Canada's fastest growing premium hay producer with exports around the world.  Yesterday Chief Fox was pleased to welcome Alberta's Premier, Jason Kenney, the Minister of Indigenous Relations, Rick Wilson, the Minister of Agriculture and Forestry, Devin Dreeshen, and local Member of the Legislative Assembly of Alberta, Joseph Schow for a tour of Kainai Forage. 

The production of premium hays on the Blood Tribe Reserve began in 1997 under the name Blood Tribe Forage Processing Plant.  In 2019 Chief and Council partnered with Indigena Capital to provide the needed capital and business models to enable the business to expand fourfold as a best-in-class forage operation.

"By partnering with Indigena Capital we were able to secure the needed capital and business expertise to set the business on a bold expansion plan and enable the Kainai/Blood Tribe to have full participation in the agricultural value chain," said Chief Roy Fox.  "In two short years, with the help of our farming partners, Kainai Forage has expanded from producing 20,000 metric tonnes of forage a year to over 52,000 metric tonnes last year and is on pace to surpass 100,000 metric tonnes of export by 2024, making us the fastest growing Timothy Hay forage operation in Canada.  It was a pleasure to be able to welcome Premier Kenney, Ministers Wilson and Dreeshen, and local MLA Schow to the operation and show them first-hand the successful expansion that is underway."

The Kainai Forage visit included a discussion with the Kainai Forage staff, over ninety percent of whom are Kainai/Blood Tribe members.  They shared their broad experience in forage and logistics, and provided a tour of the newly expanded facility.  The Government of Alberta representatives were able to directly see the four new storage sheds that have been completed since 2019 and tour the new state-of-the-art processing facility that will be operational in the fall of 2021.  In addition, they were able to experience the intricate steps that are taken from the time the premium Timothy Hay arrives at the facility until it is placed in containers and shipped overseas to the company's international customers.  They also learned about how Kainai Forage's expansion has benefited both the Kainai/Blood Tribe and the local Alberta economy, including how the aggressive expansion has led to a threefold increase of Kainai/Blood Tribe community members employed at Kainai Forage. 

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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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