The Rural Voice, 1978-02, Page 16are severe," Kevin Chester, of London, in
charge of Cargill's export program said.
"The system isn't set up to handle corn
and move it out of the (St. Lawrence)
Seaway as the surplus now shows," he
said.
Mr. Gilmour said that the long term
strategy of the company is to have elevator
handling capabilities in the Ontario market
and to build new ship loading facilities. At
present operations at Goderich and Port
Colborne are being expanded. "The
Ontario corn market hasn't been export or
water oriented...We've really been an
inward looking province from a grain
marketing point of view and we're now
beginning to look outward."
Corn stabilization
payments could be
substantial
Corn stabilization payments for the 1977
crop could be "substantial" Morris Huff.
secretary of the Ontario Grain Corn Council
told the Farmers' Week at the Ridgetown
college of Agricultural Technology in
January.
Mr. Huff said that the provincial
stabilization payments will set a price for
corn of somewhere between $2.35 and
$2.45 a bushel.
"Right now the price on the 1977 crop is
below 51.90 a bushel and I don't forsee any
substantial gains," he said. He warned
producers to take into account present
prices and potential stabilization payments
before planning what to plant in the spring.
(Stabilization plans are aimed at paying the
difference between the average price over
the past five years and the present price).
In the long -run, Mr. Huff said.
production of corn can be expected to
continue to grow from the record crop of
150 million bushels this year to 175 million
by 1985 and 200 million before 1990.
"If corn sweetner production plans
materialize....industrial purchases of corn
in eastern Canada will approach 40 million
bushels in the 1980's, about 10-15 million
bushels above 1977," he said.
In the past the main use of corn in
Ontario has been for livestock feed but as
industrial and export markets increase, he
said, farmers will have to improve the
quality of their corn through better
harvesting and drying procedures. Instead
of processors and elevators paying
prgmiums for high grade corn as they do
now, they will begin to discount inferior
corn in the future, he predicted.
He said farmers should maintain a
steadier flow of corn to the market in order
to prevent periodic shortages which result
in imports of American corn and a resulting
loss of sale for Canadian corn.
By forward contracting and futures
PG. 16. THE RURAL VOICE/FEBRUARY
buying and selling, farmers can better
assure themselves a profit margin than if
they hold their corn off the market
continually for an unreasonably high price.
Huff said.
Iowa State University economist Dr.
Robert Wisner said corn prices could rise
to the $2 a bushel level this spring, but
soybean prices may drop slightly because
of larger supplies.
Wisner said corn prices could go as high
as $2.10 from the present level of about
$1.90 but soybean prices could drop from
$5.60 a bushel to as low as $5.25.
He was analysing the 1978 corn and
soybean outlook for the United States.
However. Canadian prices are set by the
American market situation.
"With increased Soviet (corn) import
needs, the price outlook is more
encouraging, than expected three or four
months ago," said Wisner.
"But a major rise to present price levels
would require either an unexpectedly large
increase in U.S. corn feeding (for livestock)
or serious crop problems in major world
grain -producing areas."
World feed grain use is expected to
decline 1.2 percent from a year ago. he
said. but Russian imports are expected to
be double those of last year because of
Soviet droughts.
However, increased Soviet imports of
North American corn will be partially offset
by a sharp rise in 1977 West European
grain production. This will likely result in
Europeans importing less American corn.
he said.
By late 1978, corn prices will be influenced
by an expected decline in U.S. corn
acreage. Wisner forecast. Other influences
would be expected larger world corn yield
and a continued levelling or drop in.
livestock feeding.
The 1978 soybean price outlook is oaseu
mainly on a 34 percent increase in 1977
from the previous year, he said. About half
the increase will be offset by lov.er price
corn competition, said Wisner.
With increased soybean oil exports from
Canada. Europe, India and the Mediter-
ranean, U.S. soybean oil exports are
expected to drop, he said.
A continuation of relatively attractive
price levels, should result in increased
planting in 1978. with land being shifted
from corn and cotton into soybean
production, said Wisner.
W.J. Leeming head
Huron Plowmen
William J. Leeming, R.R. 4, Walton,
was re-elected president of the Huron
County Plowman's Association when the
group held its annual meeting at the
McKillop township hall, Winthrop on Dec.
19.
Jim Armstrong, host farmer for the 1978
1978.
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# # Amir i i -i i ice / -//.IN
1
NOW
is the time of year
to be replacing
your old
stable cleaner chain 11
I
5
before
winter sets in
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5
1
1
5
1
5
1
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1
1
5
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We handle chains
for most barn cleaners
LOWRY
FARM SYSTEMS
R. R. 1, Kincardine
Phone 395-5286
ZWAAN' S
WELDING AND
EQUIPMENT
Bldg. 25
Winnipeg Rd.
Vanastra
482-7931
Next to Bayfield Boats
SALES AND
SERVICE OF
Livestock Racks
Edbro Hoists
Grain Bodies
Fifth -Wheel Trailers
General Repairs