The Rural Voice, 1998-07, Page 19Grain Markets
Ontario crushers is on a strict
receiving allocation because they have
a large inventory to crush. So,
producers may not be able to ship soy-
beans as promptly as they would like.
New crop prices are once again
well above $8 per bushel and those
producers who need cash flow at
harvest time should consider forward
contracting some of their crop. And
just a word of caution to those who
are growing generic white hilum soys
— the premium has almost completely
disappeared because the main users
are the Asian food producer's. Be
careful if you intend to hold white
hilums solely for the premiums. The
only soybeans with good premiums
continue to be variety specifics or
tofus.
FEED GRAINS
Western feed grains are still too
high to replace corn in feed rations
and in fact local quantum wheat is
under -cutting western feed wheat. The
last of the Ontario barley and mixed
grain has dropped in price but is still
overpriced relative to corn. Western
feed wheat is selling for $176 while
western barley is trading for $152.
Ontario barley and mixed grain is
selling for about $115 per mt at the
farm gate. Cereal grain producers
have to remember that they are
growing grains that are filling a niche
and they should sell when there is
demand, not when the bin needs to be
emptied ahead of the next crop.
My summary will be brief. Grain
producers have been given ample
opportunity over the past eight months
to realize some excellent prices. If you
haven't sold the 1997 crop yet, you
have weathered quite a storm. The
next four to six weeks could still
provide an opportunity to bail out and
if it does, consider yourself lucky. If a
good opportunity is provided for old
crop sales, producers should sell at
least a portion of the new crop
production. Today (June 19), the
market made a strong move higher as
a result of hot weather forecasts.
Remember, good marketers want to
transfer risk rather than brag about
getting the highest price. If the sale is
profitable and fits your cash flow
needs, it is right.0
Information supplied by Dave Gordon,
LAC, Inc., Hyde Park, 519-473-9333.
LOAD MUTUAL FUNDS OFFERE
WITH NO FRONT END OR
END LOADS (Min. 5100,000 por►
Trimark, Templeto
Mut��l.
John
c/o
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, IC, Etc
ittle CFP
Investments Goderich, Ont.
9) 524-2773 or 1-800-265-5503
00.
Fin.n.'.I PI.nn:r imi
nt information about any mutual fund is contained in its simplified prospectus
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JULY 1998 15