[Farmmarketnews] Todd Austin Grain Commentary for Wednesday, June 8, 2011

[Farm Market News - Ontario Commodity Report]

Wednesday June 8, 2011

Commodity
Period
Price  
Weekly Movement

Corn CBOT
July
7.58 ½                
↑
5 ½         
cents

Soybeans CBOT
July
13.86 ¼        
↑
15 ¼          
cents

Wheat CBOT
July 
7.59 ¼        
↓
11¼     
cents

Wheat Minn.
July 
10.05 ½         
↑
16        
cents

Wheat Kansas
July 
8.91 ½        
↓
6 ½      
cents

 
 
 
 

Canadian $
Jun. 
1.0258   
↓
 48 
points

 
CORN
The USDA is expected to tighten its outlook for crop inventories in its next
crop report. Estimates are that the USDA will forecast corn inventories at 800
million bushels for the end of the next crop marketing year of August 31, 2011.
This represents a decrease of 11 percent from last month’s estimates.
Interestingly, Mexico has recently purchased over 820,000 tonnes of corn of
which one-third is for delivery in the 2012-2013 marketing year; normally buyers
do not buy more than a year ahead of time
Planting progress improved this past week in the U.S. Corn currently sits at 94
percent planted only 4 percent behind the five year average.
SOYBEANS
Soybean futures felt support from uncertainties surrounding the upcoming crop
as well. Planting in the eastern Midwest continued to lag due to wetness,
encouraging traders to maintain risk premium in the market.
Close to 68 percent of the U.S. soybean crop was planted as of June 5th, up
from 51 percent a week ago according to the recent USDA report, but below the
five year average of 82 percent. Crop emergence is at 44 percent, versus a five
year average of 61 percent.
Soybean ending stocks are expected to increase slightly; this could be due to a
decrease in export demand, given the size of South American supplies.
WHEAT
While corn plantings improved south of the border, spring wheat planting did
not. Montana and South Dakota saw precipitation continuing to delay planting.
Spring wheat is currently 79 percent planted, 19 percent behind the five year
average.
Close to 10 percent of the U.S. winter wheat crop was harvested as of June 5,
more than the 6 percent average in the previous five years, according to the
USDA.
The weaker Canadian dollar was in line with a marked fall in risk sentiment,
after U.S. Fed Chairman Ben Bernanke recently gave no indication that another
stimulus was in the works.
Lower prices of oil and stock futures pointing to a fall at the open were seen
as pressuring the Canadian dollar.
Harvest contract prices for June 8, 2011 at the close of markets are as
follows:
SWW at $255.59 per tonne ($6.96/bu.), SRW at $251.98 per tonne ($6.86 /bu.),
HRW at $282.67 per tonne ($7.69 /bu.), and HRS at $330.41 per tonne ($8.99
/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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