The Rural Voice, 1998-03, Page 19Grain Markets
cents.
Futures prices have eroded away
since the beginning of the year and
are trying to find a good support
level. Remember what happened in
January when the USDA released its
quarterly report. Futures prices were
trading around 82.60 and eventually
traded up to the $2.80s. Now, we are
hovering just above the 82.60 figure
again and my feeling is that it will
take a drought or very hot weather or
both to give prices a significant
bounce.
SOYBEANS
The USDA reduced exports for
soybeans but pretty much offset the
drop by increasing domestic crush.
Demand for soy products remains
excellent but if the crop in South
America gets harvested without many
problems, North American producers
will feel the effects of this crop
hitting the market. Only time will tell
if we are in for a sharp, quick drop or
an erosion of prices over a longer
period.
In Ontario, basis levels have
gyrated with the movement of the
Canadian dollar. In Canadian funds,
basis levels have fallen 20 to 25 cents
in both old and new crop. Producers
should keep in mind that we are
almost half way through the crop year
and really there is less than six
months to market the balance of the
crop. Right now, cash prices are
hovering just over $9/bu for crop
soys and around $8.75 for new crop
and if the dollar continues its move
higher, you can expect to see basis
levels erode significantly.
FEED GRAINS
Feed wheat and barley prices have
held stronger than corn prices and
because of this, feed manufacturers
will use 300 to 400 thousand tonnes
less of western feed grains than in
previous years. Feed wheat is trading
for about $190 per tonne and western
barley is selling for about $160 per
tonne, prices that are uncompetitive
to corn prices.
Generally speaking, the grain
INCOME giw
TAX
SERVICE
• farm, business, or personal
• complete year-round service
including tax audit
representation
• E -File available
Over 16 years' experience
Quality work
at reasonable rates
"FREE CONSULTATION"
Stephen
Thompson
R.R. #2, Clinton
482-7551
t. M. L.
TM
electric fences
for all purposes
STOP 10K Booster STOP 4000B Booster
BODMIN
SWINE GENETICS
• BOARS • GILTS
All Stock Delivered
Boar Store - viewing
area located just east
of Belgrave
RR #5, Brussels, Ont. NOG 1H0
OFFICE
Phone: 519-887-9206
Fax: 519-887-9880
(Evenings)
Phil Smith 519-764-2898
Rick Beunen 519-631-2341
Maximum output voltage for
the STOP 10K is 8200 V and
maximum output energy is
4.2 Joule.
SUPPLY LTD.
For the STOP 4000B the
maximum output voltage is
8200 V and maximum output
energy is 1.6 Joule.
Neustadt, Ontario
519-799-5366
t_ Alfa Laval Agri
MARCH 1998 15