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The Rural Voice, 1989-03, Page 10CAN-CONTM "The Complete Hog and Cattle Confinement Centre" *HOG EQUIPMENT Farrowing Crates Dry Sow Stalls Penning Hog Scales Feed Carts Flooring *CATTLE EQUIPMENT Rubber Cow Mats Self Locking Headgates Free Stalls and Comfort Stalls Fans Waterbowls Gates Hay Feeders *Partial listing: come in and see our comprehensive selection of livestock equipment and health products can -con riAl A division of Steve's Welding # 86 019 i Newry �x Newton I CAN -CON x x Milverton R R 1 Newton, Ont. NOK 1 RO 519-595-8737 8 THE RURAL VOICE GRAIN MARKETS February 17— Grain markets started the year with some enthusiasm, which quickly dissipated after the January 13 USDA report. In the first two weeks of January, producers in Ontario sold a considerable quantity of corn and soys. But since the USDA report farmer activity has been very limited. CORN Demand for corn has been slow through January and February, with basis levels at many elevators drop- ping to 80 cents over March futures. However, in the past few days these levels have started to improve, even though demand has not picked up to any great extent. When I'm talking about demand, I'm actually talking about new purchases by feed mills, etc., not necessarily actual usage. My feeling is that usage is fairly good, especially considering the short crop of 1988. We must keep in mind that processors, who export a large portion of their products, are using U.S. corn. The feeling of some in the industry is one of slight optimism for basis improvement in the spring. Futures have dropped 30 cents a bushel on old -crop corn with futures recovering 9 cents in the past two days. We appear ready to start into a so-called "Spring Rally" in futures which, barring drought problems this summer, may provide a pricing opportunity for producers. New -crop corn activity has been very quiet, with elevator basis levels at 35 to 40 cents over December futures. I don't look for improvement in new - crop basis unless a summer drought occurs. SOYBEANS The soy market has been very quiet since the USDA report in January, with futures dropping almost $1.00 a bushel on old crop. Basis levels in Ontario have dropped slightly but, considering the strength of the Canadian dollar, basis levels are very strong. This is because of the reluc- tance of producers to sell coupled with fairly brisk demand by the crushers in Ontario. This scenario could change in the spring when vessels can deliver larger supplies of soys. Old -crop basis levels are sitting at 85 cents over market futures and new - crop soy basis ranges from 70 cents to 80 cents over November futures. Again, spring may provide a good pricing opportunity for producers. The feed grain market has dropped over the past month, with Western barley taking the brunt of it. Western barley is trading in the $140 to $142 range with Western oats still trading over $180/MT. Western oats will be taken out of the control of the Wheat Board as of August 1. What this means is a dropping of the two -price system in regard to export and milling oats versus feed oats. All oats will be traded on the same basis, discounts for lower grades being the only deviation. Ontario barley is trading in the $145/MT range, a premium to West - em product. I do feel Western barley prices will pick up from these levels. Overall, we've seen quite a shakeout in all grain markets, which is typical of the February period. We are now looking for some strengthening into the spring, which may provide a good pricing opportunity.° This information is taken from sources believed reliable, but accuracy and completeness are not guaranteed. Dave Gordon is a grain merchandiser with London Agricultural Commodi- ties, Inc. in Hyde Park, Ont., 519- 473-9333 or 1-800-265-1885.