The Rural Voice, 1998-11, Page 17CII /D $1 SII PA )
Grain Markets
in mind that with the past marketing
year being so short, there is still a lot
of old crop corn sitting in bins in
Ontario. By the time you read this,
the crunch days of harvest may be
over in western Ontario but not likely
in central parts.
With the Targe Ontario crop, we
will need to export about 20 million
bushels and I foresee a weak market
through the winter months although
quite an improvement over today's
prices. Producers would be well
advised to lock in the good carry that
is available today by forward selling
some production. Even though the
Ontario basis will eventually go to
import levels, the U.S. basis may
weaken because of the larger than
expected crop in Michigan. Producers
should also take a serious look at
contracting to sell some new crop
1999 production.
SOYBEAN
The Ontario soybean crop is also
huge although not a record. Prices
have held quite well mainly because
of the low Canadian dollar. The
USDA also had a hand in boosting
prices when they reduced the U.S.
yield by almost two bushels per acre,
but the U.S. should still have a record
crop.
In Ontario, we will likely be
depending on the export market for
the foreseeable future because it
looks like soybean crush will be
down because of poor margins.
Instead, the Ontario crushers will
focus on canola, which is much more
profitable for processors, until price
fundamentals change for soybeans.
Of course the Canadian dollar will
have its usual effect on basis levels
and it is a toss-up as to which
direction the dollar will go.
The Quebec election will likely
keep a cap on exchange rates in the
short term, but longer term it should
at least try to move up to the 68 cent
area.
FEEDGRAINS
Feedgrain prices seem to have
taken a backseat to low corn prices.
Ontario barley and mixed grain are
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11. NICHOLSON
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FARM AUTOMATION SPECIALISTS
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Looking forward to seeing you at our
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on Thursday, December 3
10 a.m. - 4 p.m.
It's your opportunity to come and visit with us at the shop.
It's our opportunity to thank you personally for your patronage and visit with
you and your family to wish you all the best at this holiday. season.
• Cash Discount on Parts & Supplies
• Equipment Displays and Specials • Company Reps
• Christmas Goodies and Refreshments
• Door Prizes • Informative Speakers
✓AVo•NT AgrlMetal VALMETALI /?OVIL3EC
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I:14:D ,..,..„. ../: )
1111H
(519) 934-2343 Fax: 934-3179
Toll Free 1-877-FIXFARM (349-3276)
RR #2, Tara, Ont. NON 2N0
Ben & Sheri Rier - Owners
Bob Nicholson - Sales
Ernie Schopf - Sales
NOVEMBER 1998 13