Ticket to unparalleled heartburn

Since you speak English as well as anyone, perhaps you understand the working paragraph of a May 19 Washington Post column that explains the trading strategy employed by JP Morgan Chase & Co. to, ah, hedge its market risk. It reads: “It is this exemption that would allow (JP Morgan executive, Ina) Drew and her



Who is Glencore International?

Who is Glencore International? A lot of people are asking as the giant, Swiss-based, publicly traded multinational firm prepares to buy Viterra and become a dominant player in Canada’s grain industry. Glencore describes itself as the world’s largest commodity trader — mostly in metals and minerals, but also crops. It employs more than 2,800 people

Hedging strategies if you’re selling in the U.S.

If you sell product to the U.S., as many Canadian businesses do and want to protect yourself, you are probably asking what to do if the loonie is worth more than a U.S. greenback, which it has been again recently. With many risk-management tools available today, what is the best strategy for you in your


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

Crops briefs March 8

Record U.S. corn crop to cool red-hot prices washington / reuters U.S. farmers will harvest a record corn crop this year, which will rebuild stockpiles and bring down prices, a University of Missouri think-tank projected in a report March 5 that came in 2.5 per cent lower than the most recent U.S. government projections. The


Which wheat market best?

The end of the Canadian Wheat Board’s single desk Aug. 1, 2012, will create an increased need for a viable futures market to manage risk and aid in price discovery, said representatives of the Chicago Board of Trade, Minneapolis Grain Exchange, and ICE Futures Canada as they highlighted the benefits of using their respective contracts

Open interest tiny amid CWB doubts, timing

After nearly four weeks of trading, open interest is tiny in the new milling wheat, barley and durum futures and options contracts offered by ICE Futures Canada. “I don’t think it’s fair to say we were looking for a lot of liquidity at this point in time with the contracts,” said Brad Vannan, president and


Analyst says another price surge unlikely

An economic storm overseas has resulted in a few waves hitting Canadian shores, leaving canola markets slightly dampened by volatility and uncertainty. The European debt crisis, along with a weak American economy, has affected canola markets, ProFarmer Canada’s Mike Jubinville told farmers attending Ag Days. “Certainly this has always been and will continue to be

Cattle prices start 2012 at a new historical high

Live cattle and feeder cattle rallied to a new historical high last week. In reaching $150, feeder cattle prices achieved a technical measurement derived from a rectangle pattern. Rectangles, or box formations as they are sometimes called, are found frequently on futures price charts. Most of the time, they are continuation, or sideways consolidation patterns,