The Rural Voice, 1991-12, Page 21FARM SAFETY
Give the
gift that counts
to your family...
YOU.
Think Safety.
WEST
WAWANOSH
MUTUAL
INSURANCE
COMPANY
Merry Christmas
All of us associated with
of us associated with
West Wawanosh Mutual
share with you the joy of
Christmas and extend our
Ak wishes for a safe, successful
and happy New Year.
N. Peever
Manager
When you need Insurance call:
Frank Foran, R.R. 2, Lucknow 528-3824
Lyons & Mulhern, 46 West St.,
Goderich 524-2664
Kenneth B. MacLean, R.R. 2, Paisley 368-7537
John Nixon, R.R. 5, Brussels 887-9417
Donald R. Simpson, R.R. 3, Ripley 395-5362
Delmar Sproul, R.R. 3, Auburn 529-7273
Laurie Campbell, Brussels 887-9051
Slade Insurance Brokers Inc.
Kincardine 396-9513
Owen Sound 376-1774
Dungannon, Ont. NOM 1 RO (519) 529-7922
on the farm usually amounts to two million
tonnes, leaving 300,000 tonnes. Normally,
Ontario ships 500,000 tonnes to Quebec
and the Maritimes. So, as you can see,
using historical figures, Ontario will be in
a deficit position late in the crop year.
Now, I will admit that I may be a little
optimistic about demand for corn in
Ontario, and I may also be out of line with
my production figures, but we presently
have a hungry U.S. market that will
continue to eat away at our supply.
Whether it happens sooner or later, I do
feel that Ontario will find itself in an
import situation in 1992.
Basis levels across Ontario are quite
low right now, reflecting not only the size
of the crop, but also the quick harvest.
Elevators have basis levels for corn that
range from 20 to 25 cents under December
futures, which is very weak in comparison
to comparable levels in Michigan, which
are at 26 cents under, in U.S. funds. In
Ontario, we will continue to lag behind the
U.S. prices in times of good supply,
because we lack an extensive and
competitive rail system.
Now that the crop is under cover, I
think we will see the traditional strength in
basis into early December. How much
gain we will see depends on producers'
decisions. Right now, producers have
control of the market from the supply side
with their tight holding, and basis levels
must rise if users' needs are to be met.
However, the moment enough product is
sold into the market to satisfy nearby
requirements, basis gains will stall out.
And don't think that all end users have
bare cupboards. There is a major
industrial user in Ontario which has all of
its supplies bought for the next 30 to 45
days.
I would suggest that producers should
wait until basis does start to improve
before marketing any of their corn crop,
and I don't think we'll have to wait too
long before that happens. From late
December onward, producers should
market increments of their crop when basis
improves, as it will help keep the average
price received over the year in line with
GRIP payouts.
From a more global perspective, the
latest USDA report of November 12
showed a slight increase in U.S. produc-
tion, but a fairly substantial increase in
both U.S. and world projected stocks in
1992. In fact, China and Mexico ac-
counted for a large portion of the extra
world production. While the USDA was
reducing projected U.S. com exports in the
coming year, it increased the USSR
imports, and it seems likely that Canada
HURON BRUCEFIELD
ONTARIO
NOM 1JO
AgVise.
Mervyn J. Erb
Agronomist
Private Practitioner In Agriculture
TELEPHONE: (519) 233-7100
MOBILE: (519) 272-7288
FAX: (519) 233-3444
P A.CRO
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Best 'Wishes
from the s caff
at Cook's of
Atwood and. Walton
7hankyou for your
patronage and
Best `Wishes for
Prosperous New year.
Cook's - Atwood Branch
R. R. 3, Brussels
356-2292
Cook's - Walton Branch
Walton
887-9261
Division of Parrish &
Heimbecker, Limited.
DECEMBER 1991 17