Canada Markets

Each week, DTN asks producers to share their thoughts on various issues in DTN's 360 Poll, found on the DTN Canada website. Here is a summary of some of the latest feedback from readers.

When asked if readers think Canada's government has done enough to achieve a return to normalized trade with China and support producers through the current trade impasse, results were close to unanimous, as seen on the attached graphic.

Ten percent of responses indicated confidence that a great deal is going on behind the scenes and help for producers would arrive soon. At the same time, an over-whelming 90% of responses indicated that Canada has fallen short of using leverage to end the crisis.

Canada may have few options. Opposition Conservative leader Andrew Scheer has promoted the notion of withdrawing a $250 million Canadian contribution to the Asian Infrastructure Investment Bank, while others have advised to take actions on Chinese imports, including increased inspections and paperwork, similar to the actions taken by China on imports from Canada. A policy analyst with the Canada West Foundation told MacLean's magazine, "We need China -- and China doesn't need us," while going on to say, "Retaliating would probably be satisfying, because we're definitely being jerked around, but it might not be what's best in terms of the Canada economy."

Another recent poll asked what readers think of the Saskatchewan Court of Appeal ruling that the federal government has the constitutional powers to legislate carbon taxes across the provinces. Of the responses 5% indicated they were undecided, while a further 12% were encouraged due to the decision split across the judges. An overwhelming 83% of responses indicated it will take years to resolve this issue in the courts, while a fall federal election will be the deciding factor in resolving this issue.

The most recent poll asked readers which crop has the greatest chance of price appreciation in the crop year ahead. Responses were spread across several options. It is interesting to note that the lowest response was for canola with 11% of the respondents choosing this option, indicating that a resolution to the trade with China is not expected soon. An additional 22% selected wheat as having the best price potential in the crop year ahead, which could prove a challenge given USDA's bearish views of the global balance sheet. The highest responses were close to evenly split between a combination of peas and lentils as well as corn.

Millions of unseeded acres of corn, late emergence and cool temperatures lacking the necessary heat units to bring the 2019 crop along could make this the market to watch.

DTN 360 Poll

This week's poll asks what you think of the U.S./China tariff situation. You can weigh in with your thoughts on this poll, which is found at the lower right of your DTN Canada Home Page.

Cliff Jamieson can be reached at cliff.jamieson@dtn.com

Follow Cliff Jamieson on Twitter @CliffJamieson

(CZ)

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