[Farmmarketnews] Todd Austin Grain Commentary for August 4, 2011

[Farm Market News - Ontario Commodity Report]

Wednesday August 3, 2011

Commodity
Period
Price  
Weekly Movement

Corn CBOT
Sept
7.06    
↑
14 ½   
cents

Soybeans CBOT
Sept
13.60 ½     
↓
15 ¼      
cents

Wheat CBOT
Sept 
7.10 ½     
↑
19    
cents

Wheat Minn.
Sept 
8.44 ¾      
↓
6 ¼ 
cents

Wheat Kansas
Sept 
8.08  
↑
19 ¾   
cents

 
 
 
 

Canadian $
Sept. 
 1.0377
↓
140 
points

 
CORN
Corn futures rallied on renewed concerns about hot weather reducing the size of
the U.S. corn harvest. This sparked fears of tightening grain supplies, which
drove corn and wheat prices higher on the CBOT. 
Commodity brokerage firm INTL FC Stone estimated the U.S. corn production at
13.002 billion bushels, with an average yield of 153.2 bushels per acre. This
figure compares with the USDA corn production forecast of 13.470 billion bushels
and an average yield of 158.7 bushel per acre.
SOYBEANS
A Bloomberg News survey showed that soybean demand from China may climb, as
consumption by the hog industry increases, boosting processing profits and
imports. Crushing will likely expand as high pork prices and government
subsidies prompt farmers to boost pig production. 
About 60 percent of the U.S. soybean crop, in the top 18 producing stats, was
in good to excellent conditions as of July 31, down from 62 percent a week
earlier.
WHEAT
Wheat slipped from a two-week top as renewed fears about the health of the
global economy pressured commodity markets, including oil and industrial metals.
Confirmation of a last-gasp deal to avoid default by the United States failed to
bring any relief, as investors focused on worries that the major economies could
slip back into recession amid weak data and Europe’s potential debt crisis.
Traders are concerned that rising Russian exports may curb demand for wheat
supplies from the United States.  Interfax reported that Russia may export 20
million to 25 million tonnes of grain this season and may ship as much as 5
million tonnes of wheat to Egypt.
Harvest contract prices for August 3, 2011 at the close of the market, are as
follows:
SWW at $256.79 per tonne ($6.99 /bu.), SRW at $242.63 per tonne ($6.60 /bu.),
HRW at $278.03 per tonne ($7.57 /bu.), and HRS at $302.54 per tonne ($8.23
/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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