The Rural Voice, 1998-12, Page 544.04.vt
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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
B.J.
BEAR
GRAIN CO. LTD.
WET BREWERS
GRAIN
can help your
feeding
program by:
• providing high quality rumen
by-pass protein
• improving palatability of roughage diets
• extending roughage supply
• replace high cost supplements
Also available
HOMINY.
GLUTEN,
and other single
ingredient
feeds.
Happy
Holidays to
you and yours
o� �v
B.J. BEAR
GRAIN CO. LTD.
Floradale, Ont. NOB 1 VO
(519) 669-1750
50 THE RURAL VOICE
Grain Markets
U.S. growers hold
grain, boost prices
By Dave Gordon
Last mdnth when I wrote this
column I thought harvest would be
completed in Ontario, but there is
still corn out, especially in Central
and Eastern Ontario where less than
10 per cent of the crop is still in the
field. The United States is also still
harvesting the last five per cent to 10
per cent of their crop.
Futures prices have held well
mostly because U.S. farmers are not
willing to sell and, to a lesser extent,
consecutive USDA reports have
predicted lowered soybean
production. While these reports have
given soybean prices some support,
corn prices have been given some
stability as well.
In the last month, the United
States government put together an
aid package for Russia which
included wheat, corn and meat.
These quantities were not large
enough to impress traders.
CORN
The USDA increased production
to 9.836 billion bushels but increased
the projected carryover even more to
1.779 billion bushels. Neither
increase should be positive for
prices. However, corn prices. turned
higher the day of the report because
of the United States farmer's
reluctance to sell. Even though there
is a very Targe crop, the pipeline
supplies are not adequate in the short
term and basis levels in the United
States have strengthened recently
and now futures prices are also
reacting.
In Ontario, we will have a record
corn crop, one that is well above
domestic usage. Basis levels are very
weak in American funds, but once
the crop is finally under cover, we
should see significant improvement.
However, the quantity of corn that
needs to be exported, if prices are
expected to improve by next
summer, will keep a lid on local
prices for the coming months. In
short, it is a buyer's market.
Today, Ontario elevators are
showing a basis level for 1998 of
between $0.55 - $0.65 over the
December futures which could move
at the same levels over March futures
by next month. New crop 1999 basis
is currently sitting at $0.75 over
December 1999 futures.
SOYBEANS
The USDA surprised many
market analysts by once again
lowering the soybean production
numbers to 2.763 billion bushels as
well as projected carryover. The only
thing that made prices jump quickly
was the fact that traders were caught
leaning the wrong way. Currently,
lack of producer selling is helping to
sustain recent price rallies. We must
keep in mind though, that world
soybean and soymeal stocks are at
18 -month highs and depending on
what happens in South America,
could temper price gains in beans.
In Ontario, a lot of soybeans have
been exported offshore and although
there are plenty of soybeans
available right now, crushers may
still have to keep their bids strong to
attract enough supplies later in the
crop year. Right now, basis appears
to be very strong because of the low
Canadian dollar. The dollar will
continue to waffle at least until the
Quebec provincial elections are over.
The results of the election will likely
determine the future direction of the
Canadian dollar. It is sad that one
special interest group can have so
much effect on the nation's currency.
FEEDGRAINS
Basically nothing has changed
with regards to feed grain prices.
Western grains are sorely overpriced
compared to Ontario corn and other
Ontario grains. Ontario barley and
mixed grain are trading for about