Better Farming - January 2017

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Better Farming January 2017 Dig Deeper: 41
BETTER BUSINESS
L ast year, some farmers faced a
challenging growing season
because of the drought. In such
conditions, marketing considerations
take on particular importance in
helping to maximize profits. With a
bountiful American 2016 harvest and
varying export demands in the
international marketplace, Better
Farming asked two commodity
experts what they think 2017 will
bring for the markets.
Speculations for 2017
international markets and
demand
Strength of market demand is crucial
for farmers when selling their grain.
Cash crop commodity stocks from
2016 are up from the previous year.
This move means export demand
strength will be the main influencer
of pricing, said Jean-Philippe Ger-
vais, chief agricultural economist for
Farm Credit Canada. “Demand is
strong and looks to remain strong for
the foreseeable future.
“While lots of questions exist
about the actual size of their invento-
ries, demand from China is projected
to be strong from consumers and
buyers, especially as the hog herd
may be rebuilding,” said Gervais.
This export demand should
continue to remain strong, said
Abhinesh Gopal, commodity analyst
for Risk Management.
( Better Farming is also part of the
group of companies.)
“Many countries faced weather
concerns because of El Nino. This
resulted in production issues around
the world,” said Gopal. These weather
problems helped boost the United
States export program in 2016,
especially for corn and soybeans.
Feed should continue to be in high
demand for 2017. The United States
Department of Agriculture (USDA)
expects an increase in both livestock
and meat production. This will be
supportive for feed prices, Gopal
suggested.
In regard to new Canadian export
markets, “any new markets are great,”
said Gopal. Trade deals such as the
Canadian-European Union Compre-
hensive Economic and Trade Agree-
ment support demand.
Market signals for the beginning
of the year
Although there are many market
factors that cannot be predicted,
there are some signals that hint at
what the year may bring.
Western Canada faced less than
desirable weather for part of the 2016
growing season. The Prairies’ chal-
lenging harvest resulted in low-
quality grain, thus limiting crop
marketing opportunities for some
farmers, according to Gervais.
Because of these harvesting
challenges, elevators, producers, and
processors had to dry and blend
grain. “For crops like durum or
We are pleased to introduce Better
Business as a newmonthly
department to explore topics which
influence the bottom line of farm
operations. In each new edition
we’ll connect with industry experts
to provide readers with insight and
advice on business management,
marketing, and accounting.
Start the year off on the right foot
A new year offers a new variety of challenges and opportunities for commercial agriculture.
Commodity experts offer advice for marketing in 2017.
by JENNIFER JACKSON
Jean-Philippe Gervais
Trait Stewardship Responsibilities Notice to Farmers
Monsanto Company is a member of Excellence Through Stewardship® (ETS).Monsanto products are commercialized in accordance with ETS Product Launch Stewardship Guidance, and in compliance with Monsanto’s Policy for Commercialization
of Biotechnology-Derived Plant Products in Commodity Crops. These products have been approved for import into key export markets with functioning regulatory systems. Any crop or material produced from these products can only be exported to, or
used, processed or sold in countries where all necessary regulatory approvals have been granted. It is a violation of national and international law to move material containing biotech traits across boundaries into nations where import is not permitted.
Growers should talk to their grain handler or product purchaser to confirm their buying position for these products. Excellence Through Stewardship ® is a registered trademark of Excellence Through Stewardship.
ALWAYS READ AND FOLLOW PESTICIDE LABEL DIRECTIONS. Roundup Ready® technology contains genes that confer tolerance to glyphosate, an active ingredient in Roundup® brand agricultural herbicides. Roundup Ready 2 Xtend™ soybeans
contain genes that confer tolerance to glyphosate and dicamba. Agricultural herbicides containing glyphosate will kill crops that are not tolerant to glyphosate, and those containing dicamba will kill crops that are not tolerant to dicamba. Contact your
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metalaxyl (M and S isomers), fludioxonil and thiamethoxam. Acceleron® seed applied solutions for canola plus Vibrance® is a combination of two separate individually-registered products, which together contain the active ingredients difenoconazole,
metalaxyl (M and S isomers), fludioxonil, thiamethoxam, and sedaxane. Acceleron ® seed applied solutions for corn (fungicides and insecticide) is a combination of four separate individually-registered products, which together contain the active
ingredients metalaxyl, trifloxystrobin, ipconazole, and clothianidin. Acceleron® seed applied solutions for corn (fungicides only) is a combination of three separate individually-registered products, which together contain the active ingredients metalaxyl,
trifloxystrobin and ipconazole. Acceleron® seed applied solutions for corn with Poncho®/VoTivo™ (fungicides, insecticide and nematicide) is a combination of five separate individually-registered products, which together contain the active ingredients
metalaxyl, trifloxystrobin, ipconazole, clothianidin and Bacillus firmus strain I-1582. Acceleron® seed applied solutions for soybeans (fungicides and insecticide) is a combination of four separate individually registered products, which together contain
the active ingredients fluxapyroxad, pyraclostrobin, metalaxyl and imidacloprid. Acceleron® seed applied solutions for soybeans (fungicides only) is a combination of three separate
individually registered products, which together contain the active ingredients fluxapyroxad, pyraclostrobin and metalaxyl. Acceleron®, Cell-Tech™, DEKALB and Design ®, DEKALB®,
Genuity and Design ®, Genuity®, JumpStart®, Optimize ®, RIB Complete®, Roundup Ready 2 Technology and Design®, Roundup Ready 2 Xtend™, Roundup Ready 2 Yield ®, Roundup
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