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The Rural Voice, 1989-04, Page 6CAN-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 clin-con )YxEm1 A division of Steve's Welding # 86 019 Newry x Newton CAN -CON x X Milverton R R 1 Newton, Ont. NOK 1RO 519-595-8737 4 THE RURAL VOICE GRAIN MARKETS March 22, 1989: The grain markets have rallied over the past month in fairly quiet trading. This is being looked upon as the spring rally, and how much higher the markets go will depend on several factors. One of the main factors will be the planting intentions report on March 31 as well as moisture conditions in the U.S. and harvest conditions in South America. CORN Com futures have rallied about 15 cents/bu. since February and basis has actually risen 5 cents/bu. Local demand is still dominated by feed processors who are generally grinding less feed than one year ago. However, some areas of Ontario have virtually run out of corn, although areas west of London and east of Toronto have good supplies. The basis levels in Ontario are strong and getting close to the value of U.S. corn delivered into Ontario with full countervail duty included. Corn basis levels at elevators are 95 cents over May futures for old crop and 40 cents over December futures for new crop corn. FOB farm basis levels are in the range of $1.05 to $1.10 over May futures. I expect some added demand to come into the market later in the spring but only because selling will slow. As a producer, you should look at this rally as an opportunity to sell some old and new crop corn. SOPS Soybean futures have rallied over40 cents per bushel in the past month and have held fairly strong recently. Again the planting intentions report will help determine how high soys will go before running out of steam. A crop size of 62 million acres would be somewhat friendly to the market while a crop of 64 million acres would be bearish. Basis levels in Ontario have re- mained fairly strong because of a drop in the Canadian dollar and because of crusher demand. Elevator basis levels are 95 cents over May futures for old crop soys with off -farm bids at $1.10 over May futures. New crop soys are sitting at 75 to 85 cents over November futures with off -farm bids at 95 cents over November. I feel it would be most prudent to do some selling at these price levels. No matter what happens through the sum- mer, you can still lock in a profit at more than $8.00/bu. for new crop soys. Feed grains have held steady over the past month at lower levels than last fall. Western barley is trading in the $142 to $144 range in store Goderich, with Western oats still trading over $180/MT. Ontario barley is worth $145 to $152 depending on loading facilities. Because of the strong prices in Thun- der Bay, it doesn't appear that Western feed grain prices will be dropping when navigation opens. I just made a quick comment about loading facilities. Producers should look at their loadout ability if they sell grain direct from their bins. There is nothing more frustrating than having trucks sit for an hour to load a trailer. Also keep in mind that there are not very many commercial carriers who have trucks with sucker units on them. Auger loading is fine, but the minimum size of auger should be 7 to 8 inches. Enough about loading facilities. We are fast approaching a period when some pricing of corn and soybeans should be done. Last year wasn't a good experience but there is a fundamental difference today. Prices are generally profitable now. Very seldom do we have two consecutive years when mar- keting can be done exactly the same. And, barring a summer drought, we could be seeing the highs of the season this spring.0 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.