The Rural Voice, 1993-10, Page 23Grain Markets
showed that only 14 per cent of the
U.S. crop was mature compared to
40 per cent normally. With corn
maturity so far behind, an early frost
is a very real concern. Besides the
frost concern, the cool night time
temperatures will begin to slow the
plant down. Can the crop in the
northern corn belt escape an early
frost? We will know by this time
next month.
Back to Ontario, briefly. The
snows last week in Western Canada
virtually assured another large
supply of feed wheat for the coming
year. As I've said before, it only
makes sense that feed mills in Ontar-
io use as much wheat as possible,
but it will be at corn producers'
expense.
Last week, I noticed a basis phen-
omenon in the U.S. that is quite for-
eign to Ontario. The basis levels for
old crop corn at country elevators
was lower than for new crop. Usual-
ly, in Ontario, we have a stronger old
crop price than new crop. The
thinking in Michigan must be to
forget about the poor quality 1992
crop and get on with the 1993 crop.
SOYBEANS
The basis for old crop or cash
soybeans has really zoomed in the
last month, and only today
(September 16) did the basis finally
break. The early harvested soys sold
this week for up to $$.50/bu. With
any run of good weather in
September, a large portion of the
crops could be harvested before
October. Basis levels will revert to
new crop harvest value very quickly
now. However, with a good portion
of the production already contracted
and a good export program in place,
there shouldn't be too much
downward pressure put on the basis
from heavy selling. The value of the
Canadian dollar will have the most
effect, but only if it moves sharply in
one direction, and since the election
call the dollar has stabilized in a
range of 75.5 cents to 76 cents.
The last USDA reports came out
as shockers. Not only did the
bureaucrats raise production figures,
but they lowered usage. As a result,
soybean futures dropped 23 cents on
EST. 1871 at Teeswater,
COMPANY OFFICE Teeswater
For competitive quotations on FARMS
contact the nearest Broker or Agent:
Harold Fair, Kincardine
McDonagh Insurance Broker Ltd.
Lucknow
Teeswater
or
James G. Mair, Teeswater
Eric R. Thacker, R.R. #4, Kincardine
CULROSS
MUTUAL
INSURANCE
COMPANY
Ontario
519-392-6260
and HOMES,
CHAPMAN, GRAHAM & LAWRENCE INS
Walkerton
Hanover
Durham
Ayton
Markdale
HURONVIEW INSURANCE BROKERS L
R.R. #1, Kincardine
Phone 396-7082
Phone 528-3423
Phone 392-6200
1-800-265-3013
Phone 392-6806
Phone 395-5829
.BROKERS
Phone 881-0611
Phone 364-2790
Phone 369-3131
Phone 665-7726
Phone 986-4351
TD.
Phone 395-0539
"120 YEARS OF SERVICE
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5th Wheel
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"Many Options as
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FEEDTANKS
14 ft. 6 in.
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(or build to spec.)
• 14 gauge metal
• Feed Factories
10 -Ton Tandem Axle
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Hwy. 23, Atwood, Ont.
519-356-2802
Skilled craftsmanship assures
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OCTOBER 1993 19