The Rural Voice, 1993-12, Page 22EST. 1873
ho ick MUTUAL INS
WROXETER
519-335-3561 1
... And she gave
birth to her first-
born son and
wrapped him in
swaddling clothes
and laid him in
a manger.
Luke 2:7
May all the joys
of the Christmas
Season be with
you and your
family.
Merry
Christmas
URANCE COMPANY
, ONTARIO
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18 THE RURAL VOICE
Grain Markets
fLJ
um -
Fireworks in
grain markets
The last 30 days have seen more
action in grain prices than we've seen
for many months. The USDA crop
production reports of November 9 set
the stage for real fireworks and most
markets were "limit up" on November
10. Since that date, prices have
stabilized. Personally, I am not as
surprised by the production figures as
much as I am by the timing. USDA is
not known to make radical changes
from one report to the next.
CORN
The USDA corn production number
finally confirmed what many of us
expected, but I thought they would wait
until December to issue a 6.5 billion
bushel crop size. We now know the
projected production by state and just
how devastating the rain, clouds and
cool weather was to the com crop west
of the Mississippi. As a result, corn
futures moved from $2.61 to $2.85
basis December futures in two days.
We are now into the higher harvest
prices that I've been talking about for
the last three months.
Now, the market will go high
enough to ration supplies because the
U.S. production is enough to cover only
normal domestic consumption. Right
now, it appears that prices may ration
the crop early so producers should be
ready to "pull the trigger" on sales.
Projected ending stocks were
lowered to 881 million bushels or 11.36
per cent of usage, a far cry from the 2.1
billion bushel carryover of this year.
Now, the U.S. farmer will have to grow
more com to restore a more normal
stocks position. This can be
accomplished in two ways. Firstly, it
appears the government set aside of
five per cent will be dropped for 1994