[Farmmarketnews] Todd Austin Ontario Grains Commentary

[Farm Market News - Ontario Commodity Report]

Wednesday April 27, 2011

Commodity
Period
Price  
Weekly Movement

Corn CBOT
May. 
7.52 ¼        
↑
19 ½  
cents

Soybeans CBOT
May.
13.78   
↑
20 ¼  
cents

Wheat CBOT
May. 
7.77    
↓
8 
cents

Wheat Minn.
May. 
9.47 ½   
↑
8 ¾ 
cents

Wheat Kansas
May. 
9.12 ½   
↓
7 ½   
cents

 
 
 
 

Canadian $
Jun. 
1.0500 
↑
 41
points

 
CORN
Stats Canada reports that producers intend to plant more corn this year, two
million acres, which is an increase of 6.7 percent from last year. The weather
may have the last word on actual acreage as rain continues to fall in southern
Ontario.  While it looks like it may take some time for before planting can
begin, once started, a favourable amount of land can get planted in a day.
 Wet weather continues to hinder corn planting south of the border. Planting
progressed to 9 percent complete this past week, up 2 percent from last week and
well behind the five year average, as cold temperatures, excess rainfall, and in
some areas snow, have combined to delay corn planting in the Cornbelt states.
CME Group Inc. may increase the limit on daily price moves for U.S. corn
futures in the face of record highs. The limit for one-day gains or losses at
the Chicago Board of Trade could expand to 50 cents from 30 cents, CME spokesman
Chris Grams said Tuesday. Increased trading limits would allow prices to respond
more quickly to changes in weather and other factors that can affect supply and
demand. Higher limits also could increase volatility, allowing large swings in
prices. 
 
SOYBEANS
CBOT soy oil and BMD palm oil futures are trading on a negative note reacting
to falling crude oil prices.  The Soy complex plunged further on weak global
markets triggered by weak Chinese demand, as it again moves to tighten interest
rates in order to control inflation. 
Soybeans dropped on speculation that commodity demand will decline as central
banks move to slow global growth. The Federal Open Market Committee is expected
to indicate it will pursue its $600 billion bond-buying program to its scheduled
conclusion at the end of June. It is also expected to reiterate that it will
keep interest rates unusually low for "an extended period."
 
WHEAT
U.S. wheat futures dropped 4.5 percent on Wednesday, the biggest decline in
more than two months.  The drop can be attributed to forecasts for much-needed
rain in Kansas, where the wheat crop has been under drought-like conditions.
Wet weather is hampering spring wheat planting as well.  The USDA weekly Crop
Progress Report showed that just 6 percent of the spring wheat crop had been
planted as of Sunday, compared to 39 percent last year. The 10-year average for
this time of year is 27 percent. The lowest year on record is 1997, when only 4
percent was planted. 
 
Current contract prices for April 27, 2011 at the close of the markets are as
follows:
SWW at $255.97 per tonne ($6.97 /bu.), SRW at $257.72 per tonne ($7.01 /bu.),
HRW at $275.21 per tonne ($7.49 /bu.), and HRS at $327.83 per tonne ($8.92
/bu.).
John Jordan
Editor, AgriLink and Farm Market News
University of Guelph, Ridgetown Campus
Tel. 519-674-1500 x 63577

Fax. 519-674-1530
E-mail: jjordan at ridgetownc.uoguelph.ca 
AgriLink website : www.ridgetownc.com/agrilink 
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