logo
Canadian wheat, canola crops a ‘mixed bag,' with rain critical

Canadian wheat, canola crops a ‘mixed bag,' with rain critical

CTV News18-07-2025
A seeding rig is used to plant a wheat crop on the family farm near Cremona, Alta., Tuesday, May 6, 2025. THE CANADIAN PRESS/Jeff McIntosh
LANGHAM, Saskatchewan - Canadian farmers are likely to produce average-size wheat and canola crops this autumn, but years of drought have made rain critical for the plants to fulfill their potential, farmers and analysts said this week at the Ag in Motion farm show.
In eastern Saskatchewan, Robert Andjelic, a major Canadian farmland investor, said he was seeing lush, dense crops of spring wheat and canola in perfect condition. In southwestern Saskatchewan, however, he described spring wheat dying under the pressure of extreme drought.
Across Western Canada, he saw a wide range of 'terrible' to 'terrific' crops, he said.
'It's such a mixed bag,' he said while touring some of the more than 225,000 acres (91,000 hectares) he owns across the prairie provinces.
Canada is the world's largest exporter of canola, durum wheat, and some pulse crops such as lentils, with China, the United States, Japan, Mexico, North Africa, and India among its largest buyers. Its spring wheat crop is vital to millers around the globe, and U.S. grocery shelf staples such as Cheerios cereal and Quaker oatmeal rely on Canadian oats.
Analysts and farmers interviewed by Reuters said they expect the country's total crop output to be about the same as last year, when farmers also endured a wide range of conditions, but still produced one of Canada's biggest crops ever.
While that probably means Canada's canola and spring wheat production will be about the same as last year, when farmers produced average-sized harvests, the outlook is worse for durum wheat and lentils, which farmers grow in some of the areas hit by extreme dryness.
'They have been under these conditions too long,' crop analyst Bruce Burnett of MarketsFarm said about some durum and lentil crops in the southwestern Prairies, adding that some were being baled for livestock feed.
Farmers said cereal grains such as wheat and durum were developing far fewer kernels per plant because of drought in some areas, resulting in lower yields.
Burnett estimates Canadian durum yield will be less than last year's 34 bushels per acre, which was an average yield.
Most farmers need at least one more significant rainfall for grain kernels to fill out, farmers and analysts said.
Burnett said canola crops were benefiting from cooler weather this July than last year, when scorching heat damaged millions of acres that were in the crucial flowering stage. Smoky air from forest fires was making the sunlight less direct and harsh, he said.
The oilseed is crushed mainly to produce vegetable oil and animal feed.
Statistics Canada is scheduled to issue its first crop production estimates of the year on August 28.
Farmer adviser Rob Saik, who drove across central Alberta and Saskatchewan to the farm show, said some parts of the Prairies were producing durum, lentils, and canola hammered by drought, but in most places, 'we're in pretty good shape.'
Reporting by Ed White in Langham, Saskatchewan. Editing by Emily Schmall and Rod Nickel, Reuters
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Why Everyone Is Talking About Sirius XM Stock
Why Everyone Is Talking About Sirius XM Stock

Globe and Mail

timean hour ago

  • Globe and Mail

Why Everyone Is Talking About Sirius XM Stock

Key Points Sirius XM generates recurring subscription revenue. Berkshire Hathaway owns over one-third of the company. However, Sirius XM faces challenges in expanding its reach. 10 stocks we like better than Sirius XM › Sirius XM (NASDAQ: SIRI) isn't often the center of attention, unlike some of its larger media peers, such as Netflix or Spotify. But that's starting to change. The stock has dropped more than 40% from its highs (as of this writing) in the last 12 months, drawing interest from value hunters and long-term investors alike. And beneath the surface, there's more to the story than meets the eye. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » So why is everyone talking about Sirius XM stock right now? Here's what investors need to know. Sirius XM operates a recurring revenue business model Sirius XM operates a subscription-based satellite and streaming audio service. Its core business revolves around delivering a broad range of audio content, including music, sports, news, talk shows, and entertainment, to users across North America. For a monthly fee -- depending on the plan -- subscribers gain access via factory-installed satellite radios in vehicles, the SiriusXM app, and smart speakers or other connected devices. Subscription revenue accounts for 76% of the company's total, making it the cornerstone of the business. Sirius XM also generates revenue from advertising (20% of revenue), mainly from users who subscribe to the ad - supported content, primarily through Pandora and podcasting. The remaining 4% of revenue comes from licensing and other hardware sales. In other words, Sirius XM is effectively a hybrid between legacy media and digital streaming, built around vehicle-based installations and habitual listening patterns. Sirius XM has huge backing from smart investors One reason the stock is making headlines is that Berkshire Hathaway owns 35.4% of Sirius XM -- a sizable bet, and not a recent one. Warren Buffett's team has been accumulating shares for years, suggesting long-term conviction. While we can only speculate why Berkshire Hathaway has purchased such a massive stake in the company, there are at least two likely reasons. First, Sirius XM's subscription business is sticky and recurring, with a loyal base of drivers who regularly tune in -- a strong foundation for cash generation, even amid modest subscriber losses. And that brings us to the second point, which is Sirius XM's disciplined capital allocation framework. Historically, the media company has shown restraint in deploying excess capital, focusing on returning cash to shareholders through buybacks and dividends rather than on flashy acquisitions. In the last five years alone, it has repurchased $4 billion worth of stocks. This mix of reliable cash flow and conservative capital use aligns well with Berkshire's investing philosophy. A cheap stock, but not without risk Sirius XM's recent poor stock performance has led to its attractive valuation. As of the time of writing, it has a price-to-sales (P/S) ratio of 1, down from its five-year high of 3. Comparatively, Spotify trades at a P/S ratio of 8.3 times. The stock looks cheap, but there are real challenges: Sirius XM posted a net loss in 2024, a reversal from its history of profitability. While the loss was primarily due to one-time restructuring and impairment charges, it suggests that the company faces some challenges going forward. Revenue has declined from $9 billion in 2022 to $8.7 billion in 2024, signaling saturation in its core market. Paid subscribers are slipping -- down from 34.9 million in 2019 to 33.2 million in 2024. While Sirius XM remains highly profitable on the cash flow level, having generated $1 billion in free cash flow in 2024, its declining revenue suggests that it is struggling to compete against younger peers like Spotify in expanding its reach. Sirius XM is pinning hopes on its advertising and podcast business, including its acquisition of Pandora. But that turnaround remains a work in progress. Pandora remains far behind the category leaders, and competition in podcasting is fierce. Worse still, Panda's monthly active users have been declining over the last five years as well, down from 63.5 million to 43.3 million. In other words, while Sirius XM still has a loyal base of subscribers, this cohort is contracting over the years, with no sign of a turnaround anytime soon. What does it all mean? Sirius XM is a paradox: It's not growing, but it's still throwing off tons of cash. And while its audio subscription business model looks dated, it has the backing of one of the most respected investors of our time. Whether Sirius is a value trap or a misunderstood opportunity depends on investors' perspective. The company faces real risks, but if it can stabilize its subscriber base and revitalize Pandora, there could be meaningful upside from here. Either way, it's one worth keeping on your radar. Should you invest $1,000 in Sirius XM right now? Before you buy stock in Sirius XM, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Sirius XM wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* Now, it's worth noting Stock Advisor's total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store