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The Rural Voice, 1990-08, Page 20can•con �vxsm� Round Bale Hay Feeder 7' diam. x 4' high available with 1" - 1 1/4" or 1 1/2" square tubing i i . �1 Unique Sectional Hay Feeder • 1 section makes perfect corner feeder • combine 2-3 or 4 sections to make a feeder custom -sized to your farm • hinge pins for easy assembly Collapsible Hay Saver • fits inside most round hay feeders • fodder stays inside feeder instead of being trampled underfoot Bale tarps are now in stock #86 0191 Newry x Newton CAN -CON x X Milverton A division of Steve's Welding R R 1 Newton, Ont. NOK 1R0 519-595-8737 16 THE RURAL VOICE GRAIN MARKETS July 21,1990 — On July 2 and 3, corn and beans were strong because of a fairly bullish 6 to 10 -day weather forecast, but the July 4 forecast was almost the reverse of the previous re- ports, with good growing conditions forecast. As a result, markets plum- metted and have continued down. CORN On July 2, corn markets rallied to make new contract highs based on weather concerns but could not make a move through the 3.00 mark. The following day, corn traded around the 2.90 area and then started the drop after the July 4 holiday. I thought the June 1 low of 2.62 on December fu- tures would hold, but now it looks like we'll fall to the 2.55 gap area. There is still an underlying tone of strength in the market because of the projected crop of 7.8 billion bushels and a reduced carryout in 1991. However, we'll have to contend with lower markets in the near term. Basis levels have strengthened considerably in the old crop, with supplies becoming tighter. Elevator basis levels have gone up to 75 to 80 cents over September futures. New crop basis is holding, though one elevator chain dropped 5 cents at the elevator to 25 cents over December. We shouldn't be too negative towards the corn market, even though we've had a major drop in prices. But I have modified my thoughts about how high the market might go. The last. high put in on July 2 will likely hold through the fall, with 2.50 holding on the bottom side. The stain factor to look at now will be demand. Other feed grains and wheat are competing with corn now, but with lower corn prices one can hope that demand will pick up from the processors. SOYBEANS Soybean futures rallied on July 2 to 6.80 basis November on a limit up move, followed by similar moves down to the corn market, but not to the same extent. It appears that soys could drop to the previous low of about 6.00 on the November. In Ontario, basis levels have slipped because of the Canadian dol- lar rising and soybean prices falling. Today old crop basis is about 55 cents over August futures at elevators and 45 cents over November for new crop soybeans. On-farm bids are 20 cents higher for old crop and 15 cents higher for new crop. The old crop basis isn't likely to get better. It might be wise to lock in a basis before there is any more slip- page. FEED GRAINS Feed grain prices have dropped substantially and trade is quite thin, with new crop barley already being harvested. The new crop barley is trading at a considerable discount, and I expect spring barley to get down to the $1.00 to $1.05 range at elevators. Milling quality oats have also taken a drop, with old crop oats hard- pressed to find a home while new crop is setting at about $90.00 per mt. at elevators. My feeling is that oats, mixed grain, and barley will spend the harvest period in the doldrums simply because of the large supply . My suggestion would be to hold back part of your crop and market that portion later in the year when the supplies tighten. Overall, I still feel that the grain markets have underlying strength, simply because of the lower stocks in both corn and soybeans. We're see- ing absolutely ideal growing weather and speculators are carrying the mar- ket away to the downside. A return to more normal summer -time weather will help to turn the markets around and we may still see some quick, sharp moves over the next month. The other factor that will influence grain prices is demand. Demand for corn will stay fairly strong throughout the next year and the demand for soy- beans should improve with the lower prices we're experiencing. My stance right now is to sell a portion of your crops on any strength shown in the market.0 This information is supplied by Dave Go,don, London Agricultural Commodities, Inc. in Hyde Park, 519- 473-9333 or 1-800-265-1885.