The Rural Voice, 1987-10, Page 341
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BUSINESS
to keep you
WORKING
• Chisel Plow Points
• Mould Board
• Concaves
• Shins
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• Feeder Chain
• Coulter Blades
• Raddle Chain
• Grill Guards
• Roller Chain
• Gathering Chain
• Cylinder Bars
• Plow Points
• Grade 8 Fine
Thread Bolts
• Grade 5 Coarse
Thread Bolts
• Cultivator Points
• Disc Blades
• Hand Tools
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BOLTS & TOOLS LTD.
11 4 mile •441 of Hensel'
519-262-5681
ti.
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Evenings call George — 519.371.2323
32 THE RURAL VOICE
MARKET UPDATE
Corn:
Harvest is progressing through many
parts of our area, with good weather
playing a key role. Yields are widely
varied depending on how severe the hot,
dry summer days were in each area.
Chicago corn prices have remained
choppy, trading between a $1.63 and
$1.80 1/2 range recently. Some strength
is being shown despite good harvest
weather throughout the U.S. corn belt
and encouragement for PIK and ROLL.
Corn is in surplus and the USDA seems
committed to making PIK and ROLL
attractive to producers all year long.
The supply of certificiates will increase
sharply on October 1 and additional
supplies will be available as the market-
ing year progresses. This could prove
negative to the Chicago market and ral-
lies in the $1.80 to $1.84 range would
provide an excellent opportunity for
producers to price quantities of new
crop com.
The corn market currently has a
bullish bias, even though the fundamen-
tals are not especially constructive. A
delayed harvest or tight farmer holding
along with significant problems in the
Soviet Union could trigger another rally
following the expected near-term set-
back.
Local Corn Basis:
Current levels of $.45 to $.55 over
December Chicago futures will proba-
bly drop to $.35 to $.40 at peak harvest.
Values of corn are limited by the com-
petitive nature of Western grains mak-
ing their way into the feed market.
Soybeans:
As with corn, soybean harvest is well
underway at the time of writing. Yields
have been reported as low as 30 bushels
per acre and as high as 60 bushels per
acre.
The September 11 USDA Crop
Production report showed a crop of
slightly less than 2 billion bushels.
Smaller than expected carryover stocks
will also reduce the supply of soybeans
for the 1987-88 crop year. Considerably
different opinions exist conceming
export demand during the year ahead. If
demand remains good, soybean stocks
will be reduced again during the year
ahead. Soybean prices will probably
continue to be supported by tight farmer
holding.
There is generally a bullish attitude
and selling would likely decline sharply
as cash prices in the eastern corn belt
dropped under $5. Upside potential will
be limited by the CCC resale price. It
appears that soybean futures have put in
an early season low, limiting the poten-
tial for post-harvest price recovery.
Local Soybean Basis:
Indicated basis values at local elevators
of $.90 over Chicago November futures
could potentially improve if limited
quantities of beans are offered to the
market.0
The information herein
is taken from sources that
we believe to be reliable,
but is not guaranteed by us
as to accuracy or com-
pleteness.
Ag -Com Trading Inc.,
located in Exeter, is a cash
grain merchandising firm.
Telephone numbers are
235-2520 and 1-800-265-
7046.