Crude Oil's Deflationary Trigger . . . .

[malleefarmer]

china is huge for australia wool and particularly feed barley.

apparently many traders here expecting grain prices to "fall off a cliff" once the true size of aussie crop is know be it big or small, but once known trader end users can work out there plans imports or in case of trader suppliy contracts with different origin or blend perhaps.

[errolanderson]

china is huge for australia wool and particularly feed barley.

apparently many traders here expecting grain prices to "fall off a cliff" once the true size of aussie crop is know be it big or small, but once known trader end users can work out there plans imports or in case of trader suppliy contracts with different origin or blend perhaps.

Agree Mallee, grain price risk is huge right now. My frustration is as an observer is that this train wreck could be seen miles away, but political agendas, political egos get in the way. Tariffs have been the trigger of this calamity (IMO).

What is occurring right now is devastating for markets and in some cases irreparable.

[sawfly1]

Interesting to see Canadian oil
Executive s . Calling for the Canadian govt to implement .
Mandatory production cuts for the industry.

It seems oil Co.s are producing
Themselves into poverty.
Acting like farmers

[farmaholic]

Interesting to see Canadian oil
Executive s . Calling for the Canadian govt to implement .
Mandatory production cuts for the industry.

It seems oil Co.s are producing
Themselves into poverty.
Acting like farmers

Belly laughed...LOL.

At sub $20/barrel that MUST be below COP.

News says the Industry is suggesting throttling production.

Pump prices would tell me otherwise...seems there's no correlation to the cost of a barrel.

[Misterjade9]

Interesting to see Canadian oil
Executive s . Calling for the Canadian govt to implement .
Mandatory production cuts for the industry.

It seems oil Co.s are producing
Themselves into poverty.
Acting like farmers

Heard a good one on the radio news this afternoon. Cenovus wants the Alberta gov. to mandate lower oil production

[iceman]

Heard a good one on the radio news this afternoon. Cenovus wants the Alberta gov. to mandate lower oil production

This will really impact these province’s budgets if this lasts over 3 months.

[farmaholic]

Maybe a couple of new pipelines could have helped alleviate the problem.

Too bad the "Anti-crowd" won't be the first to feel the pain. I challenge them to live without anything either made from or transported with oil derivatives....hypocrites.

[shtferbrains]

Pipelines are 2 yrs away at best.

With today's politics, I don't see that happening.

Western Canada has been in a " Phantom Recession " for 2 yrs??? now.

Canadian economy shows strong growth but regionally it just keeps getting worse.

Was surprised to see job growth in last Sask report.

[Oliver88]

Maybe a couple of new pipelines could have helped alleviate the problem.

Too bad the "Anti-crowd" won't be the first to feel the pain. I challenge them to live without anything either made from or transported with oil derivatives....hypocrites.

Most of the anti crowd funding is from billionaires in California. The Rockefeller group, Tides foundation have been very successful stopping pipelines in Canada.
It would be an excellent educational opportunity for an absolute shut down of natural gas flowing to BC. The looney hippies in BC would quickly appreciate the value of fossil fuels and pipelines.

[hobbyfrmr]

Expect lower prices for the commodities you produce. Those have been in a clear deflationary trend for some time now. The most obvious example is canola in 2012 was $14USd per bushel. Today around $7.75 USD per bushel. Farmers tend to be all about inflation so they miss deflation when it is sitting in front of their nose. Input suppliers get this and collude on prices. As for getting screwed: yes and badly. The eighties were as bad as they were because farmers getting used to hyper inflation just could not see deflation in time and it wiped many out. Prices in loonie terms are irrelevant. Always convert to $USD for an indication. Looking at green fallow and sludging here in 2019.

There is no money in fallow. Payments need cash flow, fallow fields are a total liability. Mortgage, taxes, tractor hours, fuel, chemical. Legume seed, inoculant. Be prepared to take a $125.00/acre expense with no crop.
Consider the fact that if the planted acres dont do well for drought or flood or frost you have even less volume of production to sell. Fallow can tip the scales the wrong way for a farm. Check with your lender, they may not be in favour of fallow.