The Rural Voice, 2001-04, Page 63had just witnessed his own funeral
after a visit to Brazil and seeing the
gains they have made in soybean
production.
In Ontario, old crop soybean basis
levels continue to hold at import
levels while new crop basis is still
holding well above typical levels for
this time of year. If the Ontario
soybean acreage is down, expect
basis levels to continue strong in
Canadian funds. Right now, with the
dollar under 64 cents, it might be
prudent to at least lock in some new
crop basis.
As I write this, all markets have
just gone through a major washout.
Soybeans, corn wheat, and the
Canadian dollar have all been caught
up in the flood. The reason may be
somewhat psychological with the
equity markets in the toilet, the
unknown of mad cow disease and
.foot and mouth disease spreading
around the world, and the forecasts of
major soybean production in the
Americas. There are some traders
who think that this recent sell off will
now provide a base for spring rally,
but we will be starting from a lower
point. Prices are very susceptible to
weather problems this year but don't
bet the farm on the probability of
drought. I think we need to assume
"normal" weather starting with more
normal planting dates.
I think producers need to take
advantage of basis levels for both old
and new crop corn and if you price
out the grain you might want to buy
call options to take advantage of
higher prices in case there is a
weather scare. I also feel that soybean
growers may want to lock in I.P.
premiums for new crop soys.
Basically, all premiums for old crop
I.P. varieties have disappeared but
new crop premiums are still available
and we don't know how long they
will last. Producers should get
another opportunity to sell grain on a
spring rally but I'm not optimistic
about how much we will gain unless
we see a surprise in acreage figures.
Just pay close attention to the markets
especially with the Canadian dollar
being so low.0
Information supplied by Dave Gordon,
LAC, Inc., Hyde Park, 519-473-9333.
HILL & HILL FARMS LTD.
For Your 2001 Planting Needs
• ROUND UP READY SOYBEANS
2601R - 2650 H.U.
2702R - 2750 H.U.
2901R - 2900 H.U.
AG1901 - 2950 H.U.
AG2101 - 3025 H.U.
Rpundup
Ready -
SOYBEANS
Express
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Another First from First Line Seeds.
• WHITE HILUM I.P. VARIETIES
- OAC Exeter - 2800 H.U.
- Secord - 2825 H.U.
• COMMERCIAL VARIETIES
- ZEPHYR - 2750 H.U.
• OTHER SPECIALTY SOYBEANS
- TOPAZ - 2900 H.U. - HIGH SUGAR
- PROSPECT - 2800 H.U. - HIGH PROTEIN
- JASPER - 2650 H.U. - HIGH PROTEIN
• HISTICK + SOYBEAN INOCULANT
Call Pete or Kristen at
519-233-3218
Remember: Quality Is Not Expensive, It's Priceless!
APRIL 2001 59