The Rural Voice, 1995-03, Page 17indicates seasonally higher markets.
New crop basis levels dropped
slightly with the rising dollar but the
cash price has been unchanged with the
higher futures. Many producers have
forward contracted some new crop '95
as well as new crop '96.
SOYBEANS
The soybean market has dropped
slightly in Chicago but it's surprising
how strong the market is, given the
excellent condition of the Brazilian crop.
Worldwide oil demand remains strong
though, and crushers are running at, or
near, capacity. With world population
growing steadily, demand for edible oil
will continue to increase. In the short
term, however, the South American
harvest will likely have an impact on
prices until April. If Brazil, in
particular, starts to export heavily at the
onset of harvest, prices will likely
decline but probably not too much.
In Ontario, processors are crushing
about 120,000 bushels of soys per day
along with their canola crush. The
capacity of the plants is greater than their
use but unfortunately freight logistics
have been a problem for the last two
months. With the potential to increase
domestic crush, basis levels should be
relatively firm throughout the summer in
U.S. funds. But, in Canadian funds, the
basis may actually be lower if the dollar
does go higher. Currently basis for both
old and new crop is $1.75 to $1.80 over
the respective months.
FEEDGRAINS
Feed grain prices have not faltered at
all since last fall. Western feed wheat is
still trading at or near $170/mt. Western
Grain Markets
barley is selling for about $148 while
Ontario barley is trading at about $125 to
$130 and mixed grain is $120/mt. There
is still no reason to think that feed grain
will replace corn in rations at least
through the summer and fall.
I want to comment on the value of the
Canadian dollar and the effect it has on
cash crop returns. In Ontario, we are
both importers and exporters of grain
depending on the time of year or how
big the crops are. As a result, we are
subject to world prices, and more
specifically, corn and soybean prices in
Beef, Dairy & Sheep
Producers!
Improve pasture production by frost seeding
PICKSEED PR
(Pasture Renovator)
(or cert. Huia White Clover or cert. Bull Birdsfoot Trefoil)
from now till Spring.
This superior mixture
establishes easily
and will
increase yield, quality, and carrying capacity.
For your closest Pickseed
representative, contact:
Don Pullen, Clinton
Ph/Fax: (519) 233-7896
or call Debbie at
1-800-661-4769
PICKSEED
WES1IHN
WAWA WOW
9
910 •Homes 12:00 noon
TaCklVestock Pavilion
FAIR
FARM SNOW
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SOUTHWESTERN ONTARIO'S LARGEST FARM SHOW
With over 250 leading exhibitors and professionals in the farming industry.
Featuring the newest, most advanced equipment, technology, products,
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need to watch your business grow in '95.
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FARM SNOW
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MARCH 8-10,1995
WESTERN FAIR GROUNDS, LONDON
March 8 & 9 - 9:00am to 10:O0pm
March 10.9:00am to 5:(X)pm
Admission $u.OQ Children 12 and under !BCT
MARCH 1995 13