The Rural Voice, 1986-04, Page 22YOUR HEADQUARTERS FOR:
Pesticide spraying equipment.
aerial and ground application.
SPRAYER PARTS
for Hypro, Spraying Systems, Nardi,
Vicon and George White.
GSW and Pacer transfer pumps
• Hand-held and knapsack sprayers
• PVC and EVA and rubber hose
for sprayers and pumps
"Wholesale and Retail"
MILTON J. DIETZ Limited
R.R. 4, Seaforth 519.527-0608
20 THE RURAL VOICE
FARM COMMODITY WATCH
Prices as of the market close.
Friday, March 14, 1986
CORN — During the recent month
we have noticed a change in grain
traders psychology. Old crop
grains have been going down while
new crop December futures have
firmed. July corn finished at 2.32,
a loss of 23/a cents over the month,
while December corn closed at
2111/2, a gain of five cents over the
month. Recent changes in the
Farm Bill will bring more wheat
and corn on to the market this
summer, and this was primarily
responsible for the weakness in old
crop corn. The Planting Intentions
report due out on March 18 is
looking for intentions of
73 -million acres for corn, down
from last year's acreage of
83.I -million acres. One of the most
disappointing features in the corn
market of late has been the lack of
export interest. Despite improved
currency values, there seems to be
little world interest, as most buyers
seem to feel that the longer they
wait, the cheaper corn will get.
With the new crop loan price being
near 1.84, and with the record
carryover few analysts look for
significant upside potential at this
time. **HEDGERS** please read
my comments below.
SOYBEANS — As with the corn
market, traders seem to be buyers
of new crop grain, and sellers of
old crop. July beans closed at
5.401/2, a decline of '/ cent in the
last month, while November beans
finished at 5.211/2, a gain of 111/2
cents over the same period. The
Planting Intentions report due out
on March 18 is looking for
62.5 -million acres of beans
planted, compared to last year's
acreage of 63.1 -million acres. The
ratio of the loan rates i.e. 4.77 for
beans vs. 1.94 for corn (disregar-
ding the recent 4.3 per cent budget
cut) still favours bean plantings.
Unlike the corn market, export in-
terest has been brisk, as reduced
South American crops are influen-
cing the bean movement out of the
states. The principal buyers have
been the USSR, purchasing at least
1.4 million tonnes of beans rather
than meal or oil. The new USSR
crushing plants have allowed the
U.S. to be a major supplier this
year. **HEDGERS** might con-
sider some of the comments below.
LIVE CATTLE — June cattle
traded in a wide sideways type of
pattern over the month, finishing
on Friday at 59.67, a decline of .25
from the levels of last month.
Results of the March Cattle on
Feed Report were deemed
negative, showing:
Cattle on Feed ....down 8 per cent
Placements down 10 per cent
Marketings down 5 per cent
The marketings figure was lower
than most traders expected, thus
the negative reaction, but on a
more positive note, the placements
number showed a larger decline
than anticipated; this should be
friendly to longer term prices.
Good weather has been con-
tributing to weights, and unless
movement becomes more brisk,
feedlots will get over current. The
overall feeling amongst the trade is
that the lower numbers expected in
spring of '86 will be offset by
heavier weights associated with
relatively cheap feed costs.
**HEDGERS** must consider
three variables: cattle price risk,
feed cost risk, and Canadian
Dollar risk. Of these three
variables, I would urge producers
to watch our dollar carefully — it's
when you least expect it that major
moves occur, and our currency
bounced back very well from an
immediate negative reaction to the
budget. Also keep in mind that old
adage "cheap feed means cheap
meat."
LIVE HOGS — Despite weakness
in the product market, and tradi-
tional weakness in hogs during the
March timeframe, the hog market
has put on a respectable perfor-
mance over the last month. June
hogs closed on Friday at 45.20, an
improvement of 1.47 from levels
of a month ago. The scenario of
lower numbers and heavier weights
is creating the same problem in the
hog market as it is in the cattle
market — the net result being
larger amounts of meat. Poultry
output continues to expand, and is
expected to increase by about 7 per
cent this quarter. Some analysts
look for weakness in hog prices in-
to late March and early April, and
then for an improvement into sum-
mer. **HEDGERS** might con-
ac
jas-
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-- "Ni 1IiSEraj = ti
• Canadian Liquid
Air Welding &
Cutting
Equipment
• Miller Welders
• Canadian Liquid
Air Wires &
Electrodes
• Victor Welding
& Cutting
Equipment
• Safety
Equipment
FOR WEEKLY
DEPENDABLE
DELIVERY CALL
Durham
Hardware &
Equipment
Limited
519-369-3546
409 Saddler St. W.,
Durham, Ont. NOG 1R0
1/3
CANADIAN LIQUID
AIR DISTRIBUTOR
20 THE RURAL VOICE
FARM COMMODITY WATCH
Prices as of the market close.
Friday, March 14, 1986
CORN — During the recent month
we have noticed a change in grain
traders psychology. Old crop
grains have been going down while
new crop December futures have
firmed. July corn finished at 2.32,
a loss of 23/a cents over the month,
while December corn closed at
2111/2, a gain of five cents over the
month. Recent changes in the
Farm Bill will bring more wheat
and corn on to the market this
summer, and this was primarily
responsible for the weakness in old
crop corn. The Planting Intentions
report due out on March 18 is
looking for intentions of
73 -million acres for corn, down
from last year's acreage of
83.I -million acres. One of the most
disappointing features in the corn
market of late has been the lack of
export interest. Despite improved
currency values, there seems to be
little world interest, as most buyers
seem to feel that the longer they
wait, the cheaper corn will get.
With the new crop loan price being
near 1.84, and with the record
carryover few analysts look for
significant upside potential at this
time. **HEDGERS** please read
my comments below.
SOYBEANS — As with the corn
market, traders seem to be buyers
of new crop grain, and sellers of
old crop. July beans closed at
5.401/2, a decline of '/ cent in the
last month, while November beans
finished at 5.211/2, a gain of 111/2
cents over the same period. The
Planting Intentions report due out
on March 18 is looking for
62.5 -million acres of beans
planted, compared to last year's
acreage of 63.1 -million acres. The
ratio of the loan rates i.e. 4.77 for
beans vs. 1.94 for corn (disregar-
ding the recent 4.3 per cent budget
cut) still favours bean plantings.
Unlike the corn market, export in-
terest has been brisk, as reduced
South American crops are influen-
cing the bean movement out of the
states. The principal buyers have
been the USSR, purchasing at least
1.4 million tonnes of beans rather
than meal or oil. The new USSR
crushing plants have allowed the
U.S. to be a major supplier this
year. **HEDGERS** might con-
sider some of the comments below.
LIVE CATTLE — June cattle
traded in a wide sideways type of
pattern over the month, finishing
on Friday at 59.67, a decline of .25
from the levels of last month.
Results of the March Cattle on
Feed Report were deemed
negative, showing:
Cattle on Feed ....down 8 per cent
Placements down 10 per cent
Marketings down 5 per cent
The marketings figure was lower
than most traders expected, thus
the negative reaction, but on a
more positive note, the placements
number showed a larger decline
than anticipated; this should be
friendly to longer term prices.
Good weather has been con-
tributing to weights, and unless
movement becomes more brisk,
feedlots will get over current. The
overall feeling amongst the trade is
that the lower numbers expected in
spring of '86 will be offset by
heavier weights associated with
relatively cheap feed costs.
**HEDGERS** must consider
three variables: cattle price risk,
feed cost risk, and Canadian
Dollar risk. Of these three
variables, I would urge producers
to watch our dollar carefully — it's
when you least expect it that major
moves occur, and our currency
bounced back very well from an
immediate negative reaction to the
budget. Also keep in mind that old
adage "cheap feed means cheap
meat."
LIVE HOGS — Despite weakness
in the product market, and tradi-
tional weakness in hogs during the
March timeframe, the hog market
has put on a respectable perfor-
mance over the last month. June
hogs closed on Friday at 45.20, an
improvement of 1.47 from levels
of a month ago. The scenario of
lower numbers and heavier weights
is creating the same problem in the
hog market as it is in the cattle
market — the net result being
larger amounts of meat. Poultry
output continues to expand, and is
expected to increase by about 7 per
cent this quarter. Some analysts
look for weakness in hog prices in-
to late March and early April, and
then for an improvement into sum-
mer. **HEDGERS** might con-