The Rural Voice, 1999-09, Page 79Ontario at our current basis levels.
Elevators are paying 65 to 70 cents
over September futures for old crop
corn and 55 to 60 cents over December
for new 'crop. There is a good
average crop developing in Ontario
with the area from Toronto to Ottawa
looking at a record crop while western
Ontario is rather spotty. Unless wheat
gets moved out of Ontario by October,
we will have storage problems even
with a smaller crop than last year's
record.
SOYBEANS
The USDA didn't deliver quite as
negative a report for soybeans although
it was higher than the average pre -
report estimates. However, it is still
assumed that the crop will be a record
in the U.S. with a huge carryover and
futures markets traded limit down
August 12 as a result. The U.S. soybean
crop can still respond to rain and cooler
temperatures over the balance of
August while dry weather can still limit
production.
In Ontario, the stream of old crop
soys keeps flowing. We never imagined
that there were quite as many out in the
country and it will be a challenge to get
them moved before harvest begins. By
the time you read this there may only
be one price for soys. Presently, old
crop basis at elevators is $1.77 over
November while new crop is about
$1.64 over November futures.
FEEDGRAINS
Ontario feedgrain prices are
beginning to find comfortable levels
Grain Markets
with barley selling for about $90/mt
with fairly good demand. Ontario Oats
are trading between $80 and $1 10
depending on test weight and colour.
The weak sister however, is mixed
grain which is selling for about.$80/mt
with very intermittent demand as it is
tough to match buyers and sellers right
now.
It appears that the lows of early July
could hold into harvest especially for
corn. The prevailing theory is that the
U.S. producer will cash soybeans. at
harvest and take the L.D.P. but may not
sell too much corn. Even though the
ProFarmers survey showed a slightly
lower corn production figure than the
USDA report, there is still plenty of
corn available and it will take lack of
farmer selling to boost prices. Basis
levels for new crop corn in the U.S. are
relatively weak adding to the lack of
incentive for the producer to sell.
Soybeans, on the other hand, are
another story. Basis levels in the U.S.
may weaken but it won't matter to the
U.S. producer who is getting a L.D.P.
This selling could ultimately send
futures lower but, I would be surprised
if the lows of July are taken out. The
word to Ontario producers is to forward
sell more soys and avoid harvest
weakness.
Unless some of the Ontario wheat
crop is shipped out by October, stor-age
for corn and soys could be limited and
if any single factor can weaken basis
levels in Ontario, it will be the lack of
storage space. If harvest happens like it
did last year, the short time frame will
compound the problem. The main
message is to plan ahead and avoid
harvest sales if possible.0
Information supplied kV Dave Gordon,
LAC, Inc., Hyde Park, 5/9-473-933.,'
MARQUARDT
FARM DRAINAGE LTD.
(ESTABLISHED 1968)
SPECIALIZING IN:
* Farm Drainage
* Municipal Drainage
* Excavator Work
* Dozer Work
* Erosion Control
* Backhoe Work with Laser
WE OFFER:
• Personal evaluation of your project
• Detailed plans and design work
• State-of-the-art equipment
• FREE ESTIMATES
• Qualified and experienced personnel
• Guaranteed workmanship & customer service
For that personal torch, pride in workmanship.
experience and FREE ESTI 1 tTE.S call
MARQUARDT
FARM DRAINAGE LTD.
(ESTABLISHED 1968)
R.R. 113 STEVE CRONSBERRY
Palmerston, Ontario (owner)
-We install
OFFICE
343-3233
rainage tubing'
HOME
338-2373
No other glyphosate outpowers TOUCHDOWN' non-selective
herbicide when it comes to quackgrass control. Not Roundup
Transorb`; not anything.
For more information, call the
Zeneca Grower Infoline at
1-800-980-6980.
TOUCHDOWN is a registered trademark of a Zeneca Group Company Roundup Transoro is a trademark of Monsanto Company. Monsanto Canada Inc. ktencee Read and follow all label directions carefully
SEPTEMBER 1999 75