Monday, June 29, 2009

The Debts of the Spenders: Drought in Canada?

This information did not seem to affect commercials last week as they were net short the softs and grains on June 26th. Still, it is something to be mindful of going into the latter part of this summer and early fall as govt agencies re-assess potential crop yields for the harvest.

“The hills look like sawdust, really, that colour,” he said from his ranch, a short drive from Elnora, Alta. “I've never seen it where the grass didn't turn green in the spring before.”

He normally turns his 50 cow-calf pairs loose to graze in the first week of May. This year, he's still feeding them what hay he can find – much of it poor quality, all of it expensive. It costs him more than twice as much to feed hay as to rent grazing land.

Farmers and ranchers across a vast section of Alberta and Saskatchewan are staring down the same ominous fields of parched soil and brown crops.
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