The Rural Voice, 2002-03, Page 53quite weak since January I and right
now there is no indication that
anything is about to change soon. I
have been of the opinion for some
time that it will take a major drought
to take prices higher and with reports
of "el nino" re-establishing could
bring moisture to the Midwest states
this summer. The thought right now
is that the Canadian prairies would
miss this moisture and reports
indicate that Saskatchewan and
Alberta desperately need rain to get
moist[.- -eserves back to normal.
If predictions come true, Ontario
producers will plant big corn acreage
and smaller soybean acres and with
normal rainfall and temperatures, we
could see the largest corn production
ever in Ontario. How should a
producer position himself for this
harvest with his marketing? Soybean
growers do not have the same basis
concerns as corn growers unless the
Canadian dollar gains a lot of
strength. Corn growers need to
determine how much corn they need
to sell at harvest time and forward
contract that amount. If the crop is as
Targe as expected, we will need to
export corn at harvest and basis levels
will fall to a level that allows
exporters to move corn quickly.
Producers should avoid this low point
at all costs! After the crop is finally
put away in November, basis levels
should strengthen, but not soon
enough for those who need cash
before the end of the year. Producers
should not sell the whole crop at
harvest unless the cash price is
attractive.
Marketing this year will be
challenging. Are Ontario producers
up to the challenge?0
Now you can 2
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Contact us at:
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or write to us the good
old-fashioned way at:
The Rural Voice,
P.O. Box 429,
Blyth, ON NOM 1H0
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MARCH 2002 49