The Rural Voice, 1993-05, Page 20can•con
WxFm3
HAY
FEEDERS
Round Bale Hay Feeder
7' or 8' diameter available.
Available in square tubing —
1 ", 1 1/4" or 1 1/2"
Collapsible Hay Saver
• fits inside most round hay feeders
• fodder stays inside feeder instead
of being trampled underfoot
A division of Steve's Welding
R R 1, Newton, Ont NOK 1R0
519-595-8737
FARM
TIRES
Good selection of Duals
Large stock of all brands
of passenger,
truck & farm
tires
23° R1
'On Farm Service'
Two fully equipped service trucks
Willits
Tire Service
Lucknow
519-528-2103
16 THE RURAL VOICE
Grain Markets
Unusual sights
It's not unusual to see corn being
harvested in the spring, but this year
we are contending with a second crop
of corn coming to the market as well
as some soybeans. Most of the harvest
is taking place east of Woodstock and
in Central Ontario. So, while most
producers are looking ahead to spring
planting, there are quite a few who are
thinking about trying to harvest and
market corn of dubious quality.
CORN
USDA issued two reports recently.
The acreage -to -be -planted report
showed a drop of about three per cent
as compared to 1992 but the last sup-
ply/demand report showed increased
corn usage and a lower projected
carryover. This last report helped to
hold corn futures, but weather has
become the overriding factor. With
drier planting weather in the forecast,
futures have dropped a dime in the
new crop. Even though there will
likely be a Targe carryover of corn,
weather will still play its usual role in
futures prices.
In Ontario, corn demand is poor at
best and many producers have blamed
the situation on the presence of U.S.
corn in the market. This line of think-
ing doesn't hold water, given the fact
that prices in Ontario are still above
import levels for number two and
number three com. True, U.S. corn
did come into Ontario in December
and January, but this was a time period
when there was demand for good
quality product. Producers had the
opportunity to sell corn during this
period and many did so. As a result of
declining demand, grain companies
have been left holding stocks of both
U.S. and Ontario corn while the major-
ity of producer -owned com is stored
on-farm.
The abundant supply and use of
cheap western feed wheat has replaced
corn in most poultry rations and, if the
price is attractive enough, look for
heavy wheat use next year as well. So,
we can't simply blame our usage woes
on the presence of U.S. corn, but
remember there are other grains that
can replace corn in feed rations.
On the other hand, industrial users
such as CASCO use only corn and
must have certain minimum quality.
In Ontario, the required quality wasn't
offered until after users had bought
enough to meet their needs. Now pro-
ducers and elevators are both offering
grade three or better corn, especially in
the southwest, and the basis is
weakening.
The only decent demand is coming
from livestock feeders who are quite
willing to use grade five corn, but their
demand isn't making much of a dent in
the supply. We still have hope,
though, that a deal might yet be struck
to move some lower quality corn to
Cuba. Otherwise, stocks will be
carried over into new crop.
Basis levels in Ontario have
softened over the past month. To the
north of London, elevators are paying
five cents to 10 cents over May futures
for grades four and five, while number
three corn in London is sitting at 55
cents over May. New crop corn is
trading in a range of 20 cents to 30
cents over December futures.
SOYBEANS
The USDA reports were somewhat
supportive for soybean prices. While
most analysts believe soybean acreage
will be increased in the U.S., the plant-
ing intentions report showed no change
from 1992. The later supply/demand
report for 1992-93 showed no change
in projected ending stocks. Even
though wet weather has hampered
early com planting which could lead to
a larger soybean acreage, soybean
prices have held. This strength is
probably due to the U.S. aid package
to Russia which is thought to favour
shipments of soybeans and meal.
In Ontario, old crop soybean prices
have held steady due to very good
demand from crushers. Stocks in the
province are fairly low and as a result,
soybeans are being imported steadily.
It appears that basis levels for old crop
soys should hold steady throughout the
coming months.
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