[Farmmarketnews] Todd Austin Grain Commentary for July 21, 2011

[Farm Market News - Ontario Commodity Report]

Wednesday June 20, 2011

Commodity
Period
Price  
Weekly Movement

Corn CBOT
Sept
6.88 
↑
1 ¼ 
cents

Soybeans CBOT
Aug
13.78 ¼  
↑
4 ½  
cents

Wheat CBOT
Sept 
6.97 
↓
17 ½  
cents

Wheat Minn.
Sept 
8.52 ¾  
↑
32 
cents

Wheat Kansas
Sept 
7.94
↑
32
cents

 
 
 
 

Canadian $
Sept. 
1.0542
↑
136
points

 
CORN
Corn futures have rallied as extreme heat across the U.S. Midwest continues to
stress crops. This stress can contribute to yield loss, which would trim harvest
prospects during a year when a big crop is considered crucial to replenishing
tight grain inventories.
Stress during pollination and silking could result in shorter ears and fewer
kernels per ear, which would contribute to a lower yield potential. Since
average U.S. yields, along with planted and harvested acreage are closely
followed by the grain industry as key components in gauging the size of the corn
crop; any information indicating lower production would have a bullish effect on
the market.
SOYBEANS
Soybean futures rose in response to U.S crop ratings falling. Soybeans dropped
from 66 percent good to excellent last week to 64 percent this week. About 40
percent of the plants were beginning to flower, which is up from 21 percent a
week earlier.
Prior to this news, soybeans had been trending downwards on thoughts of poor
economic news in the United States. As news of higher temperatures and dryness
in the U.S. Midwest were forecasted, the market reversed direction and began to
strengthen.
WHEAT
Wheat futures have also climbed higher in response to speculation that U.S.
livestock producers will use more wheat as an alternate feed ingredient,
especially after the surge in corn prices. Wheat futures are following the corn
market.
Harvest has begun in many counties in Ontario. The over-all quality of wheat
has been excellent though yields continue to be variable. Many other areas in
Ontario are within a week of harvest. The U.S. winter wheat harvest is estimated
to be 68 percent complete.
Harvest contract prices for July 20, 2011 at the close of markets are as
follows:
SWW at $246.50 per tonne ($6.71/bu.), SRW at $232.56 per tonne ($6.33/bu.), HRW
at $267.42 per tonne ($7.28 /bu.), and HRS at $297.32 per tonne ($8.09 /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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