The Rural Voice, 1990-06, Page 21GRAIN MARKETS
in a range of 55 to 60 cents over July
futures and new crop basis in a range
of 64 to 70 cents over November
futures at the elevators.
A recent drop in the Canadian
dollar has been partially responsible
for the stronger basis, along with
slightly more interest by the crushers.
However, U.S. soys are being im-
ported at the present time, and also
keep in mind that the crush plants will
likely shut down sometime during the
summer for maintenance.
As a result, basis levels for old
crop soys will be a direct function of
the Canadian dollar and soybean
futures for the remainder of the old
crop marketing year. New crop basis
levels will be a fairly close match to
the Canadian dollar and new crop
futures.
With the wet conditions in the
U.S., acreage may be switched from
corn to soybeans even though govern-
ment programs favour corn planting.
If, in fact, more soys are planted than
originally planned, watch for futures
to stay somewhat soft and try to get
some soys forward -contracted at a
profitable price.
FEED GRAINS
Western feed grains have started to
arrive in Ontario and the tight supply
situation has been alleviated, but at
fairly strong prices. Western barley is
trading in the low $1.40s at the bay -
ports, with Ontario barley selling for
close to $1.30/mt.
Mixed grain has been coming onto
the market in good supply lately and
the price reflects this at about $1.15/
mt. However, there should be more
Ontario barley ready to come on the
market if OMAF statistics are correct.
Western oats are trading around
$1.40/mt while Ontario milling oats
are at about $1.20/mt FOB farm.
Basically, feed grains have
strengthened this spring, but not
enough to cover interest and storage,
and it doesn't appear that there will
be enough left in price gains to cover
costs.
The grain markets have had a
fairly good spring rally, and producers
have had an opportunity to sell stored
grain and forward -contract some new
crop. Both corn and soybean markets
have dropped from the highs, but I
feel there is more strength left in the
market, especially in new crop corn.
It could come from any one of
continued heavy usage, late planting,
or summer drought problems, but I
strongly believe that, with the rela-
tively tight supply -demand situation,
the market will provide opportunities
to sell corn at high prices this summer
and soybeans at moderately high
prices. With decent yields, prices
should reach a point that is profitable
to you.
As you can see, I am moderately
bullish, but you have to be aware of
the unknown and be ready to "pull the
trigger" when your price is reached.
Don't look back and second-guess
your decision if you were satisfied at
the time of the trade.
On the other hand, don't set un-
realistically high prices as a goal. Be
realistic and I believe you will have
the chance to lock in some profitable
prices this year.0
This information is taken from
reliable sources, but accuracy and
completeness are not guaranteed.
Dave Gordon is a grain merchandiser
with London Agricultural Commodi-
ties, Inc. in Hyde Park, 519-473-9333
or 1-800-265-1885.
CLARIFICATION
The footnote to the feature by
Cathy Laird in the May issue,
"The Grey Association for Devel-
opment and Growth," was an
editor's note, not a footnote sup-
plied by Cathy Laird, and should
have been identified as such.
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CUT YOUR
ENERGY &
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COSTS
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— Lower energy & protein costs
— Available all year round
— Promotes rumen activity
— Very palatable (increasing dry
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— Supplies high level of phosphorus
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— Available wet or dry
— Available in tandem & trailer loads
— We will balance your feed rations
Running low on silage or grain?
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E
By -Products
Contact: Bill DeMille
Bus. 705-445-8330
Res.: 705-444-5727
1011101
•
•
1
CALL AND
ASK ABOUT
OUR SUMMER
DISCOUNT
Call us today
for all the benefits
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1
Godshall
519-656-2618
alnton
51w82.6850
•
JUNE 1990 17