With grain markets moving faster and faster, trading company Agfinity Inc. uses modern, collaborative systems to efficiently connect the community of buyers and sellers across Western Canada.
“We are value producers, harvesting the best grain-trading opportunities for our customers,” says Agfinity trade manager Erin Harakal. “It’s not one-size-fits-all when it comes to grain marketing — what’s good for one customer might not be good for another — so we always work to find different opportunities for both our buyers and sellers.”
Agfinity works with producers and end users of feed barley, feed wheat and milling grade wheat, feed oats, milling oats, pony oats, peas, canola and lentils — virtually everything that grows out of the ground in Western Canada.
For producers, Agfinity gathers information on what they’re looking to sell, movement dates and a price range — then assembles the offer and makes it available to prospective buyers. Some products, such as barley, can include up to 70 different buyers — from grain elevators to feed lots to user buyers such as feed mills and processing plants.
“We really work with a large range of buyers to show the producer’s grain to,” says Harakal.
A seller may receive multiple bids, so an Agfinity trader can help negotiate on price or details such as movement dates until an agreement is reached and a contract is signed. The company can also look after the coordination of logistics surrounding grain movement, depending on the needs and transportation capabilities of the buyer.
On the other side of the equation, Agfinity’s buyers can view past trades on the company’s online Live Market and also have registered access to all current offers on the Buyers Hub. An Agfinity trader can then help a buyer find offers that meet their pricing needs, dates and transportation requirements, and work to reach an agreement with a producer.
“Everyone is a bit different in what they do and what they need, so we try to work to get them the right product,” says Harakal.
As a people-driven technology company in the agriculture industry, Agfinity has developed a smartphone app that provides live pricing, trade history and futures feed along with calculators and easy connection to an Agfinity trader.
To learn more and download the Agfinity Grain Marketing app, visit agfinity.com.
Source of original article: Streamlining grain trading and marketing across Western Canada | National Post
Because Farming is Forever
Market Report – Mike Szoke
As we enter the last month of 2023 hopefully the markets can gain some ground and build some positive momentum heading into 2024.
Barley: Currently, we are seeing DLVD Lethbridge prices range between $300 – $320/MT. Prices continue to remain flat as imported corn from the US continues to handcuff and prevent any price growth in this market. Export opportunities, already limited, will continue to be slow in 2024. China buying from Australia, France, and Black Sea region countries is a trend that will most likely continue. On December 4 StatsCan will be releasing their updates to the 2023 Canadian crop production estimates. In September they had output slated at 7.84 MMT; should be interesting to see if their new estimate will be closer to 8 MMT or 8.5 MMT, or even higher.
Canola: According to StatsCan, producer deliveries in October were 1.5 MMT which is a 25% decrease from 2022’s monthly volume of 1.99 MMT. January canola futures are sitting just above $700/MT with $720/MT seeming to be the resistance ceiling. Hopefully in the new year futures prices can break through that ceiling, time will tell. On a positive note, the demand for crush is high, as 974,376 tons was used in October which is 10% higher than in 2022. This is the highest volume used in 10 years and with strong margins for the crushers, the demand from them shows no signs of slowing down as we head into December and the new year. Signs are all pointing towards a record year for canola crush.
Wheat: The wheat market shows no signs of improving anytime soon and continues to trend downwards. What the support level for this market is anybody’s guess, but hopefully we will see it soon. In October producers moved 1.95 MMT of wheat compared to 2.13 MMT moved in October 2022 according to StatsCan, which is an 8.5% decrease. In global markets, Russia had a 90 MMT crop this year which is very close to the record high previously set last year. This volume from Russia is once again allowing them to be a dominant exporter in the global markets which will permit them to have a large impact on international prices.
Crude Oil: The WTI Crude Oil Spot price is currently sitting around $76 USD/bbl. which is a price that was last seen in August. It will be interesting to see how the global markets play out in the next couple days as OPEC+ discussions were rescheduled from November 25-26 to November 30th. Saudi Arabia wants other members to take on a greater proportion of production cuts so there is the potential for some cartel infighting to occur. Will they reschedule this meeting again? Perhaps 3rd times a charm. On a positive note, lower oil prices will mean lower fuel and heating prices going into winter; and if the OPEC+ disagreements continue well into the new year, potentially lower fertilizer costs as well.
Seller Tip: As much as we all want higher prices, think about your risk management strategy, and ensure it is still aligned with your revenue goals. Agfinity can help you market a few loads now before year end to hedge against 2024 market risks and potential worsening of prices. Give us a call at 1-888-969-5552!