Markets

[cottonpicken]

Can't shake this funny feeling something big may be coming down the pipe. If I was a billionaire in this world,yellen and Feds last meeting would have been the last straw. The billionaires will be the ones who move first.

[hobbyfrmr]

Cotton, thank you for the introduction. I am buying physical gold.
Obviously its a joke, i am a lowly and impoverished farmer by trade.

[cottonpicken]

I'd only recommend gold to old ladies relying on savings and a small pension,most here land or animals that provide a return.

Scary scenario that probably won't happen,if we have a currency/debt reset after the next crisis the world may say ok your currency(amount out standing) backed by your gold reserves=the purchasing power of your currency,canada has non,but the world does.

https://en.wikipedia.org/wiki/Gold_reserve

[biglentil]

If history repeats itself im betting on salt 1st, then tulips than finally crager rims.

[hobbyfrmr]

It seems to me in high school I desired Crager Rims for my truck. Very important thing back then. Chrome is still my favorite color!

[Braveheart]

Cragars looked best on Chevies.

[TOM4CWB]

And a Canola Market that defies gravity to top it off!!!

Background:

From Oct 19 Agriweek:

"Understanding the amazing canola market"

"Canola prices and demand almost defy gravity
The canola market, by any measure,
continues to boom. Cash and futures
prices last week were the highest since
2012, when most agricultural commod-
ity prices peaked. That has stimulated
near-record weekly farmer selling.
While some portion of deliveries is to
satisfy previously-signed forward con-
tracts, producer deliveries have aver-
aged over 550,000 tonnes a week over
the three weeks since harvest pressure eased off. Deliveries culminated at 673,000 tonnes in the week before last, a recent if not all-time record.

Cumulative deliveries since August 1 are 3.28 million tonnes, up from 3.13 a year ago and about 22% of deliverable 2015-16 supply with 17% of the crop year over. High deliveries in the immediate post-harvest period are usual, but the 2015-16 canola supply is sufficient to support country selling for the rest of the crop year at only about 325,000 tonnes a week. Growers are selling aggressively because prices are comparatively strong in a time when they are often soft and there is a fear that they will drop.
As the accompanying table shows, prices are being supported by the low dollar exchange rate. If the dollar were still at its year-ago rate cash canola prices in Saskatchewan would have been around $424 a tonne. That would still be higher than a year ago, at a time when US soybean futures are almost a dollar a bushel or 10% lower.
However, prices would not be at these lofty levels if not for very active demand for both seed and oil, domestically and for export. Canola seed exports up to the ninth week of the crop year reached 1.66 million tonnes, 9% above year-ago. The five-year average for the first nine weeks of the crop year is 1.17 million.
Domestic use is surging too. Canola crush during the week ended October 7 was a record at 184,500 tonnes, with capacity use reported by the Canadian Oilseed Processors Assn also at 92.4%, also a record. Capacity has increased compared to a year ago with the addition of the large Cargill plant at Camrose. Av- erage utilization for the crop year to date is 73.5%. Cumulative crush so far in 2015-16 has reached 1.37 million tonnes, pulling ahead of 1.34 million to the same date a year ago, though below the record for the date of 1.47 million two years ago.
Canola disappearance since the start of the crop year totals 2.97 million tonnes according to Canadian Grain Commission statistics, compared to intake by the system of 3.23 million, resulting in a build-up of commercial stocks at the end of the ninth week of the crop year to 1.470 million tonnes compared to 1.300 to the same year-ago week. Export terminal stocks were 334,000 tonnes vs 309,000 a week earlier and just 67,000 a year ago when rail congestion limited terminal arrivals. Western crusher canola stocks were 152,000 tonnes vs 118,000 the prior week. Canola users are allowing inventories to build because clearly they have forward com- mitments for them, and they have no reason to expect rail disruptions on the scale of a year ago. If not, basis would widen and cash prices would drop. Despite weak vegetable oil values, canola is carrying a wide premium over soy- beans at 111% on a per-tonne basis.

All of this suggests that there is independent strength in canola demand at a time of a large global vegetable oil oversupply. US soybean exports in their crop year (October-September) to date are 2% higher compared to 9% for ca- nola. Some part of the price advantage from a lower dollar exchange rate is obviously shared with canola users, but except for an unexpected and unlikely surge in dollar’s value there is nothing in sight to prick the canola balloon." Thanks Morris and Agriweek!

[farming101]

Cancel your Agriweek subscription immediately!
Cash and futures canola was higher just a few months ago!!!