GFM Network News

Historical examples show that hyperinflation is a near-perfect storm of political, social and economic factors.

Hyperinflation requires certain triggers

Inflation is more common and easier to plan and invest for

There’s been a lot of talk about inflation and even hyperinflation lately. So in a last of a series on inflation, money supply and interest rates, I thought it would be a good idea to see what happened during the infamous hyperinflation of the 1920s German Weimar Republic. And, to see if similar conditions could

Watch with interest, what goes down…

Watch with interest, what goes down…

Rates will have to go up someday, but nobody can predict when

Last month, I looked at rising commodity prices, money creation and whether inflation may or may not develop. This month, we’ll look at what all that might mean for interest rates. Interest rates, according to economic theory, are made up of two components: an inflation figure and the real rate of economic growth. These components

Editor’s Take: What comes down must (eventually) go up

It was the fall of 1981. Pierre Elliot Trudeau was once again in Sussex Drive after the brief prime ministership of Joe Clark. Ronald Reagan was just settling into the White House. And down the road, at the U.S. Federal Reserve, legendary central banker Paul Volcker was targeting inflation with high interest rates. From the

High prices can skew cost of production, and if inflation returns in earnest, so could higher rates.

Price spikes can bring input cost risks

History highlights what can happen if market events suddenly make the current debt-to-income ratio untenable

Commodity prices have been strong for the past eight months. It’s been a boon for growers, though prolonged periods of decent returns can skew the cost of production. Canadian growers could be open to significant financial hardship if they see sustained price reductions or major production challenges like those experienced in the 1970s and 1980s,

If inflation returns in earnest, so could higher rates.

Interest rates biggest farm finance risk

Farm Credit Canada says the pace of debt growth has slowed but farmers need to have an interest rate risk management plan

The expansion of Canada’s farm debt continued, but at its lowest pace in six years. Meanwhile Farm Credit Canada’s chief economist says that the potential for higher interest rates is the “darkest cloud” in that otherwise optimistic picture. Statistics Canada data showed outstanding Canadian farm debt increased by 5.9 per cent to $121.9 billion as

CBOT July 2021 corn (candlesticks) with CBOT July 2021 wheat (orange line) and July 2021 soybeans (dark green line, left column). (Barchart)

U.S. grains: Corn, soy, wheat up after sell-off

Some traders feel Thursday's sell-off overdone

Chicago | Reuters — U.S. corn, soybean and wheat futures rose sharply on Friday, rebounding from steep declines a day earlier on bargain-buying ahead of the weekend and uncertainty about weather in the Midwest crop belt, analysts said. Fresh export interest lent support as this week’s break in futures appeared to stimulate demand. Chinese state-owned

CBOT July 2021 corn (candlesticks) with MGEX, CBOT and K.C. July 2021 wheat (green, black and orange lines). (Barchart)

U.S. grains: Corn, soy plunge on weather, broad commodities sell-off

CBOT wheat follows trend lower

Chicago | Reuters — U.S. corn and soybean futures fell sharply on Thursday, pressured by outlooks for rain and cooler temperatures in the Midwest crop belt, as well as spillover from broad-based selling in the commodities sector, analysts said. Wheat followed the weaker trend, with seasonal pressure noted from the U.S. winter wheat harvest. Chicago

CME August 2021 lean hogs (candlesticks) with 20-, 50- and 100-day moving averages (pink, brown and black lines) and August 2021 live cattle (dark red open/high/low/close). (Barchart)

U.S. livestock: Hogs limit down for second consecutive day

CME August cattle end lower

Chicago | Reuters — Chicago Mercantile Exchange (CME) lean hog futures fell by an exchange-imposed limit for a second consecutive session on Thursday as commodities declined broadly. Selling by index funds fueled losses in markets from hogs to cattle and corn, after the U.S. Federal Reserve signaled it might raise interest rates sooner than expected,

(Dave Bedard photo)

Farmland appreciation continues through pandemic year

FCC report puts Canada's average land value increase at 5.4 per cent

Economic churn across Canada from the global COVID-19 pandemic didn’t faze the country’s real estate market — nor its farmland market in particular — in 2020, according to the latest review from the federal farm lending agency. Farm Credit Canada on Monday released its 2020 Farmland Values report, showing an average increase of 5.4 per

Cash advance interest rates expected to go lower yet

Cash advance interest rates could soon fall again. March 27 the Bank of Canada cut its lending rate, which affects what commercial lenders charge, by 0.05 per cent to 0.25. At press time lenders had not lowered their rates, but were expected to. If CIBC cuts its prime rate to 2.45 per cent from the