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New Report Clearly Shows Need for Government to Remove Tariffs on Fertilizer Imports for Farmers

Guelph, ON –  Grain Farmers of Ontario, the province’s largest commodity organization, representing Ontario’s 28,000 barley, corn, oat, soybean and wheat farmers, today unveils a new report by Josh Linville, Vice President Fertilizer, StoneX: “Farmers Need Fertilizer,” which represents a robust study of fertilizer and the circumstances and trends that have led to the current negative environment for farmers and the Canadian food system.

The Farmers Need Fertilizer report outlines the complexity of global fertilizer supply, demand, and price, and shows how Canada’s tariffs on fertilizer have an impact on farmers in Ontario. It also explores the investments required to address the fertilizer supply in Canada in the longer-term.

“The results of the report echo what we have been saying. ‘Farmers Need Fertilizer’ shows that the best short-term solution for food security is for the Canadian government to remove the burden of tariffs on imported fertilizer,” said Brendan Byrne, Chair, Grain Farmers of Ontario. “The report also explores the magnitude of the investment required to implement other solutions to address Canada’s fertilizer supply.”

Grain farmers are not alone in calling on government to put food security first and remove all barriers to crop inputs such as fertilizer. The United Nations Secretary General António Guterres has also called on governments around the world to: remove barriers to “avert a global food crisis and ensure food security.”

The Farmers Need Fertilizer report cites the Food and Agriculture Organization of the United Nations (FAO) position that commercial fertilizer is directly responsible for approximately 60 per cent of total world food production. And that without commercial fertilizers, global food security would become considerably harder to attain, especially with a growing population.

Source : GFO

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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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