The Rural Voice, 1997-09, Page 24August should be a benefit and this
record could easily be attained.
Demand for soybeans has been
increased as well, but the projected
carryover has been increased,
although it still remains quite low
relative to usage.
In Ontario, the demand for old
crop soys is waning as one crusher
already has enough soybeans bought
to operate until harvest begins.
However, with a weak Canadian
dollar, basis levels are still holding
well above $3 over November futures
or $1/bu higher than for new crop
soys. It still appears that Ontario will
produce a record soybean crop and
producers should realize that the new
crop basis is historically strong right
now.
FEEDGRAINS
The small crop of cereal grains in
Ontario is being harvested with
generally good yields and quality.
Mixed grain and barley are trading
for about $120 to $125/mt. The
western Canadian harvest is well
Grain Markets
underway but prices have not been
affected in Ontario yet because new
crop grain will not reach Ontario
from the west until October. Right
now, western barley is selling for
about $160 while western wheat is
selling for $170/mt. When new crop
western grains do arrive in Ontario,
they should be competitive to corn
prices and as a result, demand should
be quite good.
The last USDA report basically
told us that the U.S. corn crop has
deteriorated in a period of increasing
demand. A crop that once had the
potential to be more than 10 billion
bushels is now projected in the low
nines and could easily be a crop of
less than 9 billion in the final tally.
With demand for corn increasing
steadily in all sectors, the U.S. needs
to produce a crop of at (east 9.5
billion bushels to maintain some
equilibrium. As you might surmise, I
am friendly to corn prices in the
coming year, net because of a
shortage of stocks, but rather simply
Attention Landowners
Tree Planting Conservation Services
The Maitland Valley Conservation Authority (MVCA) in partnership with
Trees Ontario (Project Tree Cover) offers technical and financial assistance to
encourage the reforestation of marginal lands and the establishment of
windbreaks. Applications are now being accepted for the 1998 services.
Reforestation Assistance Service
This service provides assistance to landowners reforesting marginal lands or
planting field windbreaks. Tree planting of seedling trees is available for areas
1 acre and above in size.
The deadline for applications for the 1998 planting season is September 30,
1997.
Roadside and Windbreak Tree Service
This service provides larger trees for windbreak and roadside plantings. A
variety of tree species are available from the MVCA, based on a 50 tree
minimum order.
The deadline for applications for the 1998 planting season is September 8,
1997.
For further information or applications contact:
Maitland Valley
Conservation Authority
Box 127, Wroxeter, Ontario
NOG 2X0 (519) 335-3557
20 THE RURAL VOICE
the fact that demand will outstrip
production.
The U.S. soybean crop, on the
other hand, continues to grow and
even though demand is also
increasing, the carryover stocks will
increase. However, because demand
is so good, price drops should be
short in duration. In other words,
demand should keep good support
under soybean prices.
The question now is how will corn
and soybean prices relate to each
other other. It was obvious that a very
large soybean crop was going to be
planted in 1997 because of the price
relationship, but what will happen in
1998? A cursory thought is that corn
prices will be higher and soybean
prices lower and as a result, more
corn will be planted. But, the costs to
grow each crop will have to be
closely studied. In the meantime,
producers will have lots of
opportunity to market corn profitably
in the coming months, but you will
likely have to be more patient when
marketing your soybean crop.
Overall, I am becoming more
optimistic about grain prices for
producers.0
Information supplied by Dave Gordon,
LAC, Inc., Hyde Park, 519-473-9333.
The Rural Voice
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and will publish
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