GFM Network News


Is it time to shift the power from agricultural pricing based on USDA data to Canadian data?

Data is too important to be left in the hands of others

Canada relies on the U.S for critical agricultural data, and that leaves us extraordinarily vulnerable

Vulnerability is a word that I have taken to heart a lot in the past few years. We are vulnerable when we change, or seek change; vulnerable when we are left open to volatile weather or markets; and in agriculture, we are extraordinarily vulnerable when we are without data. The partial shutdown of the U.S. […] Read more

Get an elevator receipt, grain receipt, or cash purchase ticket when delivering to an elevator.

Make sure you get paid what you’re owed

The Canadian Grain Commission requires grain companies it licenses to provide security to cover unpaid deliveries

Reduce your risk of not getting paid when delivering grain by following these recommendations: Before making a delivery, make sure the company is licensed by the Canadian Grain Commission, which requires licensed grain companies to provide security to cover money owed to producers for deliveries. Unregulated grains and deliveries of any grain to unlicensed grain […] Read more


Open outcry floor trading has largely gone the way of the dodo, but grain and livestock markets still make unexpected moves and producers need to take advantage, says market expert David Derwin.

Chuck the crystal ball — protect your downside

If you’re worried about missing big rallies and don’t like delivery commitments, 
then consider options, says David Derwin

David Derwin has one piece of advice for farmers wondering where markets will go in 2017: “Expect the unexpected.” “A lot of the marketing advice out there is about trying to guess where the market is going to go, and I think too much time is spent there,” said Derwin, an investment adviser with PI […] Read more

Tips for managing market volatility in 2017

It’s too soon to say exactly how market volatility in 2017 is going to play out, but Errol Anderson has some tips to manage whatever the markets throw at you in the coming year. Strong Futures-Strong Basis What should you do? “Price it. It’s tough to do because, at that point, everybody is bullish. But […] Read more


Lower prices and crop quality hammered by poor harvest weather means it will be tough to squeeze out 
a profit this year.

In tough times like these, the goal is averting a disaster

The upcoming Hedging Edge workshop offers producers an 
introduction to options, futures, and hedging

It’s come to this. “It’s all about trying to make it a break-even year or a slight loss year, and prevent it from turning into a disaster year,” said David Derwin, commodities portfolio manager at PI Financial. A miserable harvest has created an abundance of poor-quality crops and with prices down sharply, producers are going […] Read more

Three crop marketing pros share their No. 1 tip

We asked the Hedging Edge experts for their No. 1 marketing tip for this fall. Here’s what they had to say. Neil Blue Provincial crop market analyst “My No. 1 tip — and this isn’t an earth-shaking one — is shop around. That means knowing your product first — getting a grade from potential buyers, […] Read more


High canola crush margins should boost demand

Recent strong canola crush margins may have a positive impact on producers, says a provincial crop analyst. While companies don’t release their actual crush margin, it can be estimated from canola, meal and oil futures markets, said Neil Blue. “The current calculated margin is over $100/tonne, and this compares to about $40/tonne last August,” said […] Read more

Supply and demand ultimately determines grain prices, but speculators often ignore those fundamentals and that can create selling opportunities, says provincial crop market analyst Neil Blue.

Look to sell when speculators mis-price the market

Commodity fund investors don’t always pay attention to market fundamentals

Some speculation in commodities markets is a good thing, but large amounts of speculative money these days means price swings can be very dramatic, says a provincial crop market analyst. And that can create opportunities. “It has been estimated that over a trillion dollars is involved in the commodity futures and options trade,” said Neil […] Read more


What does your grain sell for at port?

When grain gridlock hit two years ago, the gap between the elevator and port price appears to have skyrocketed — and cost farmers billions

The jury’s still out on whether knowing the price of export grain relative to local cash prices will help producers get better prices. But the Alberta Wheat Commission intends to find out. “The port price would provide an indication of whether the system is constrained or functioning efficiently,” said Tom Steve, the commission’s general manager. […] Read more

Run the numbers and don’t be buffaloed by basis

Your grain company likely uses unadjusted basis in U.S. dollars, 
but you want basis and the cash price in the same currency

Wheat basis has been a hot topic this year and a weak loonie has continued to make it an issue, says a provincial market analyst. Basis is calculated as the difference between the cash market price and the relevant futures price. Spring wheat futures, as traded on the Minneapolis Grain Exchange (MGEX), are generally used […] Read more