In this month’s report, Peter Andersen observes that the international financial markets are exhibiting little anxiety over the US debt ceiling since they expect Washington to ultimately negotiate a deal in the coming months. He points out the brokering of any deal to raise the debt ceiling will be tied to spending cuts, which is good both for the US and the global economy since it assures the financial markets the US can regain a sustainable financial condition.
One of the key trends identified in recent Andersen Reports is a rise in agricultural prices across the board, particularly corn. This month’s summary notes a sharp increase in wheat prices, which are likely to remain high as a result of near-drought conditions in some crop-producing regions of Europe. Unfortunately, rain and flooding across the Prairies are likely to reduce Canadian crop yields, limiting the ability of Canadian farmers to take advantage of the higher prices.
More on American fiscal policy and debt management is available in The Economist at http://www.economist.com/node/18806205
Read the current Globe and Mail commentary about the agricultural sector here: http://www.theglobeandmail.com/news/national/prairies/prairie-flooding-causes-farming-disaster/article2061272/
For a thorough analysis of Canada’s economy – and the world’s – this month, the Andersen Report was emailed to all members this afternoon.