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Tag Archives interest rates — page 4

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Markets

Buy or rent? Land rent-to-price ratio can help farmers decide

FCC sees current ratios on farmland as (roughly) stable

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Higher interest rates don’t seem to be affecting the ratio between land values and land rental costs — at least, not yet. Farm Credit Canada’s latest analysis of farmland rental prices says they’re roughly maintaining their traditional linkage, says J.P Gervais, the organization’s chief economist. “We were curious to see whether that would bring up […] Read more
CBOT May 2023 soybeans with Bollinger bands (20,2). (Barchart)
Crops, Markets

U.S. grains: Chicago soy closes lower

Brazil production, Fed in focus for soy; wheat, corn still capped by Black Sea deal extension

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Reuters — Chicago soy futures reversed gains to close lower on Tuesday, pushed down by rising estimates of Brazilian production, while corn and wheat dipped as markets kept a cautious eye on an expected Federal Reserve rate hike. Wheat and corn continue to be capped by the extension of a Black Sea export corridor from […] Read more
CBOT May 2023 soft red winter wheat with Bollinger bands (20,2). (Barchart)
Crops, Markets

U.S. grains: Wheat, corn rally from multi-month lows

Ukraine corridor talks eyed

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Chicago | Reuters — U.S. wheat and corn futures rose on Tuesday, rebounding from multi-month lows set last week, as Wall Street equity markets turned higher and signs of fresh grain export demand emerged, analysts said. Uncertainty about talks to extend a wartime grain export corridor from Ukraine lent support. Soybean futures posted smaller advances […] Read more
“We have not yet seen the full impact of higher interest rates on the demand for farmland.” J.P. Gervais. Graphic: Farm Credit Canada
Crops

Farmland values exceed expectations

Ontario leads the country with 19.4 per cent increase

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Average farmland prices were up 12.8 per cent in Canada in 2022, the largest increase seen since 2014 when the increase was 14.3 per cent. The increase follows gains of 8.3 per cent in 2021 and 5.4 per cent in 2020. J.P. Gervais, FCC’s chief economist, said the numbers were a little bit of a […] Read more
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Crops, Markets

Prairie cash wheat: U.S. futures drag down wheat bids

Potential for more interest rate hikes remains

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MarketsFarm — Hawkish comments from the chair of the U.S. Federal Reserve and the possible renewal of the Black Sea Grain Initiative brought down wheat futures on the Chicago Board of Trade (CBOT) for the week ended Thursday — and, in turn, pressured western Canadian wheat bids. In front of the U.S. Senate banking committee […] Read more
The reputation of the Bank of Canada will be undermined if the public believes that it’s pounding away with a hammer that is not needed and causing much hardship in the process.
News

Opinion: Are interest rates the right tool to fight inflation?

The Bank of Canada’s ‘resolute’ fight against inflation could threaten its credibility

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The Bank of Canada “resolutely” declared it will fight inflation by raising interest rates. To demonstrate its unwavering commitment to reach its two per cent inflation target, the eighth consecutive interest rate hike on Jan. 25 brings the policy rate to 4.5 per cent. The bank’s logic is this: when demand outpaces what the economy […] Read more
CBOT March 2023 soft red winter wheat with 20-day moving average, MGEX March 2023 hard red spring wheat (yellow line) and K.C. March 2023 hard red winter wheat (orange line). (Barchart)
Crops, Markets

U.S. grains: Wheat nears one-month low on Black Sea competition

Chicago soybeans, corn also lower

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Chicago | Reuters — U.S. wheat futures fell to their lowest in nearly a month on Wednesday as an Egyptian purchase tender highlighted export competition from the Black Sea region, tempering worries about war disruption to Ukrainian supplies, analysts said. Soybean futures fell on profit-taking and expectations of increasing soy export competition from Brazil, where […] Read more
CBOT March 2023 corn with 20-, 50- and 100-day moving averages. (Barchart)
Crops, Markets

CBOT weekly outlook: Wide array of factors affecting grain prices

Corn, soy see speculative profit-taking

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MarketsFarm — Recent rains in parts of South America, as well as a correction in the markets, have paused rallies in corn and soybeans on the Chicago Board of Trade (CBOT), according to one trader. Jack Scoville, vice-president of The Price Futures Group in Chicago, said that while central and southern Argentina are still mired […] Read more
Although farm revenues are up, costs are also increasing, said FCC Industry Relations Manager Darlene McBain.
News

Farm revenues should rise in 2023, but so will costs

Annual FCC Economic Outlook focuses on predicted global economic slowdown

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Food price inflation and labour market volatility remain the post-pandemic factors to watch, Farm Credit Canada finance specialists said during the agency’s annual economic outlook Jan. 24. Although challenges like supply chain disruptions and fluctuating input costs have eased somewhat, they will likely have an effect on farm costs and profitability in 2023. Held the […] Read more
As a major importer of commodities, China will continue to leverage European countries against the U.S. by leveraging the yuan against the U.S. dollar, according to Arlan Suderman of StoneX Group.
Markets, News

Increasing interest rates put pressure on national debt obligations

Shifts continue in global policies and politics, says commodities economist

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Trying to predict the course of commodity prices from one year to the next is a complex task. It requires a broad understanding of global monetary and geopolitical influences that can be confusing and contradictory. Arlan Suderman, chief commodities economist with StoneX Group, gave attendees at the recent Ontario Agricultural Conference a robust overview of […] Read more

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