The Rural Voice, 1994-12, Page 16CIRCULAR MANURE TANKS
• Concrete Foundations • Circular Tanks • Bunker Silo'
• Crane Rental • Excavation
• Insulated Concrete Wall Hog Bam Construction
GREY -BRUCE CONSTRUCTION LIMITED
R. R. 5, MILDMAY, ONTARIO
Phone (519) 367-2372 Fax (519) 367-2172
LARRY HOFFARTH JIM POECHMAN
(519) 364-4523 (519) 367-2910
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There's Nothing In
The World Like
Christmas In
The Country
In the spirit of the season,
we extend Season's Greetings
to you and your families
and wish you a safe
and happy holiday season
and a prosperous 1995.
Royal Bank Agricultural Centres
GREY/BRUCE
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12 THE RURAL VOICE
Canada's leader in
agricultural banking.
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Grain Markets
Prices remain
surprisingly strong
By the time you read this, harvest
will be complete in Ontario and most of
the fall work will be done. The weath-
er has been nothing short of sensational
with warm temperatures and little rain,
so now it's time to reflect.
Markets have held amazingly well
considering that record corn and
soybean crops have been harvested in
the U.S. As well, Ontario has produced
a corn crop that is larger than anyone
expected and a record soybean crop.
So, why are prices holding up so well?
It comes back to one factor — lack of
producer selling. The U.S. farmer has
refused to sell at these very poor U.S.
basis levels and the result has been
steady futures prices. Ontario
producers have been light sellers of
corn and the result has been strong
basis levels and a need to import to
meet spot demand.
CORN
The last USDA report pushed esti-
mated production to 10 billion bushels
for the first time in history. Instead of
dropping like a stone, futures prices
gained for two days after the report as
the production figure was already
factored into the market and there has
been very little hedge pressure.
In Ontario, com yields have
surprised many industry people.
Elevators that didn't expect to fill with
com are more than full and many farm
driers have had to ship in order to make
space. However, producer selling has
been light and this may not bode well
for basis levels during the winter.
When a market strengthens from export
levels to import levels at harvest, much
of the demand for corn gets looked
after early with imported corn. If many
producers decide to sell corn between
mid-November and mid-December, the
market will be hard pressed to absorb
the supply. The result could be weaker
basis levels during the winter months.