The Rural Voice, 1988-08, Page 23GRAIN MARKETS
demand report on July 23 indicating
a reduced usage as well as a slightly
reduced carryout. The estimated crop
production is set at 1.650 billion
bushels for 1988, down from the
previous estimate of 1.880 billion
bushels. With improved crop pros-
pects, it will be tough for futures to
recover very much of this recent loss.
You likely will not see, however, the
lows in futures prices of early 1988
during the balance of this year.
OTHER FEED GRAINS
Other feed grains remain in a fair-
ly tight supply situation. However,
prices are valued relative to corn, with
new crop barley, oats, and mixed grain
being a relative unknown in quantity
and quality.
We feel that feed grain prices will
remain firm with barley presently
trading in the $135 to $140/mt range.
Word from Western Canada is that
recent rains will not do much for
cereal crops in the southern part of the
prairies.
The oats futures market has backed
off considerably, which has been
reflected partially in the cash prices.
The quality of our oat crop remains a
question mark but it appears that
prices will remain, with elevator
prices ranging from $180 to $200 for
high-quality products.
The bull market in grains looks
like it has been exhausted and it will
take some more very bullish news to
make the market move higher. An
older fellow who is very experienced
in trading markets keeps telling me
that "markets are made to be sold."
In other words, markets spend
more time falling and, as producers,
you should use these price rallies to
sell.
We will likely continue to see the
wide swings in prices in the near
future in some grains and, with an
inverted futures market, be prepared
to do some selling.0
This information is taken from
sources believed reliable, but accuracy
and completeness is not guaranteed.
Dave Gordon is a grain merchan-
diser with London Agricultural Com-
modities, Inc. in Hyde Park, Ontario,
519-473-9333 or 1-800-265-1885.
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Plan to check it out! 14/
AUGUST 1988 21