The Rural Voice, 1988-09, Page 11129 Annual
STOCKER/FEEDER
SALE
Stratton Sales Yard
11:00 A.M.
OCT. 17
90% calves — 1O% yearlings
weighed into the ring
Auctioneer
Hugh Filson
Live Satellite
Transmission To
Kitchener
Stock Yards
Bank, rail & trucking services are
available at Stratton Sales Yard
RAINY RIVER
CATTLEMEN'S
ASSOCIATION
B.K. Hartry — President
Box 505, Emo Ont. POW 1E0
Phone:
807-487-2556
Durham Welding Supplies Ltd.
• Canadian Liquid Air
cutting & welding
equipment
• Miller arc welders
• Gases
• Wires
• Electrodes
for Dependable Weekly Delivery
Call:
Durham Welding
Supplies Ltd.
Durham, Ont.
519-369-3546
1-800-265-3885
Serving the welding industry since 1952
34 THE RURAL VOICE
GRAIN MARKETS
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Grain markets have witnessed a big
sell-off over the past month, with a par-
tial recovery to present levels of $2.90/
bu. for December corn futures. At pres-
ent, the markets seem to be in a holding
pattern until harvest begins.
The soybean crop appeared to be
helped initially by general rains in mid-
July but very hot conditions returned
during the critical August podding peri-
ods. Spark's released a private estimate
of slightly over 1.4 billion bushels of
soys but we'll just have to wait for
harvest to see if this production figure
holds up.
The corn crop in the U.S. suffered
irreversible damage during the drought
and the Spark's estimate reflected this
with a production figure of 4.198 billion
bushels.
In Ontario, the soybean crop looks
much better than it did a month ago, but
the corn crop is suspect as far as quality
and yield are concerned.
CORN:
Com futures took a big dive in late
July to $2.62 1/2 on September futures
and $2.73 1/2 on December futures. The
market recovered to near $3.00 on Sep-
tember futures and is trading in a range
of $2.70 to $2.90 at present with Decem-
ber futures trading between $2.74 and
$3.00. It will take some surprise news to
make the market rally. However, I do
feel there is very limited downside risk
in the market.
Contrary to my last column, which
discussed stabilization payments for the
1987 crops, it now appears questionable
as to whether federal stabilization will
be paid. You would be well-advised to
read the Newsletter column in the July -
August Corn Producer or check with the
OCPA regarding any news concerning a
1987 stabilization payment.
Basis levels have strengthened again
for Ontario corn producers with old crop
corn at $.65 over December futures and
new crop corn rising to $.60 over De-
cember futures which closed on August
25 at $2.90/bu.
SOYBEANS:
Soybeans in Ontario are still produc-
ing beans in the top pods and adding
some bushels to the crop. There have
been some reports of plants dropping
pods as well as spider mite problems in
the southwest part of Ontario.
Soybean futures dropped recently to
$8.12/bu. on the November and closed
on August 25 at $8.47/bu. Futures will
probably trade between $8.00 and $9.00
until we see what the harvest brings in
the U.S.
Basis levels in Ontario have levelled
out at $0.90 over November futures for
new crop and $1.05 over November
futures for old crop soys. With the
futures market showing no carry, it is
telling you that the market wants soy-
beans in the fall rather than later.
The Western feed grain supply will
be one of the smallest in recent memory.
In fact the stocks are the lowest since
1952. Coupled with a smaller feed grain
crop in Ontario, this has led to fairly
strong prices. Barley is trading in the
$1.40/bu. range F.O.B. farms. The oat
crop in Ontario has been quite variable
with yields ranging from 20 bu./acre to
70 bu./acre. Quality has also been vari-
able with high test weights being found
in some areas of the province.
As I stated in my last column, the
bull market appears to have been ex-
hausted, but we will continue to see very
wide price swings with any piece of
"new" news.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.