Currency risk protection offered

Volatile currencies can hurt your bottom line more than changes in commodity prices. That’s why the Keystone Agricultural Producers (KAP), in conjunction with Western Union Business Solutions, is introducing a new foreign exchange risk-management program. “If it makes sense to a producer, we can provide a solution,” said Mark Kelly, Western Union Business Solutions’ senior

Price now or price later? A primer on DDCs

A deferred delivery contract can lock in a profit, 
but also prevents cashing in on future price increases

Adeferred delivery contract (DDC) is the most popular type of grain-marketing contract provided by grain buyers. A DDC, as they are often called, locks in the price for a certain quantity of a base grade of grain to be delivered to a certain location at some date in the future. “Advantages of a DDC are


CWB officials promote pools at grower meetings

While the Canadian Wheat Board had its monopoly, some farmers complained getting a “good, average price” for wheat wasn’t good enough. But in the coming open market, the board is betting lots will think that’s pretty good. “The average of the market through a pooling operation does actually return people the best value, overall, over

Breakaway gap alerts of counter-seasonal rally

On December 19, 2011, a breakaway gap materialized, alerting soybean producers and traders alike to a sudden change in the price direction of the soybean market. In fact, this gap not only confirmed an end to the downward price spiral, but it marked the beginning of a counter-seasonal rally, with soybean prices rallying $1.65 per


Speculators raise wheat short to record high

Large speculators raised their net short position in Chicago Board of Trade wheat futures and options to a record high amid ample stocks at a time of increased interest in the export market, regulatory data showed Feb. 24. The non-commercial traders, a category that includes hedge funds, cut back on their bullish bets on corn



U.S. farm co-op buying Canada durum

The largest U.S. grain co-operative, CHS Inc., is buying Canadian durum and looks to bulk up on other crops there to seize the “phenomenal” opportunity left by the end of the Canadian Wheat Board marketing monopoly later this year, a CHS executive told Reuters Feb. 27. In mid-December, a Canadian bill became law that will

China to partly lift ban on Canada canola imports

beijing / reuters /Chinese quarantine authorities will allow imports of Canadian canola by some selected crushers located in major growing areas, partially lifting a 2009 ban it imposed because of blackleg concerns. The import relaxation, likely to be cleared in the second half of the year, would further boost Canadian canola exports later in the


Western Canadian flaxseed prices edge higher

Western Canadian flaxseed cash bids have advanced in the past month, with fresh export demand along with tight supply concerns contributing to the firmness, said an industry participant. “The Chinese market has really helped out western Canadian flax prices this year,” said Chuck Penner, an analyst with Left Field Commodity Research in Winnipeg, Manitoba. The