[Farmmarketnews] Ontario Grain Market Commentary by Ahmed Chilmeran Grain Farmers of Ontario

Thu Aug 30 09:36:54 EDT 2012

Wednesday August 29, 2012 			
Commodity	Period	Price  	Weekly Movement - Thursday to Friday	 	 

Corn CBOT	Sep	8.1025	↑	8.75	cents
Soybeans CBOT	Sep	17.6325	↑	30.25	cents
Wheat CBOT	Sep	8.8550	↑	18.25	cents
Wheat Minn.	Sep	9.4050	↑	26.00	cents
Wheat Kansas	Sep	8.9600	↑	19.75	cents

Canadian $	Sep	1.0107	↑	28.00	points

Ben Bernanke, the Fed Reserve’s top head will be speaking at an annual economic conference in Jackson Hole, Wyoming. The conference is of an interest because it raises questions as to whether the Fed Reserve will follow up with another round of quantitative easing or bond swapping with hopes of keeping the US economy growing. According to the US Labor Department, the US economy grew by 1.7% in Q2 ahead of the forecast of 1.5%. While there’s a silver lining in the numbers, the message is clear that the economy is moving at a slow pace. Meanwhile, Canadian housing statistics are rising at a diminishing rate with July’s Teranet-National Bank home price index year-over-year growth rate of 4.8%. This is further supported with CMHC report of a lower Q2 profits for new housing starts. The consensus has been that the Canadian housing market is on a cooling off trend.

Corn

Corn rose in Chicago following speculation that hurricane Isaac may do little to help the draught stricken crop. Harvest of dryer than expected silage corn in Ontario began last week with some ear drop being reported in the crop. This essentially will impact test weight and possibly lower yields. The crop is anticipated to achieve maturity earlier than usual with expectation of a black line forming within the coming week depending on the region. 

Soybeans

Soybeans rose in Chicago following speculation that hurricane Isaac may do little to help the draught stricken crop. Ontario soybean fields are turning in various regions of the province. North of London is showing the possibility of harvest in the coming week, weather permitting.

WHEAT

Wheat rose in Chicago following cuts to Russia's export program. This in turn could provide a much needed boost to the North American export market since a stronger dollar has been putting downward pressure. The Grand Valley area is still seeing some late spring wheat. Approximately 40% of the crop in this area was affected by the rains in the weeks prior; resulting in sprouting that has been downgraded to feed. The impact to farmers is somewhat lessened by the fact that feed wheat is trading much closer to milling wheat than in recent history. Yields have been fair, but protein is lower this time around.
Contract prices for August 29th, 2012 at 4pm, are as follows:
SWW at $308.66 per tonne ($8.40/bu.), HRW at $317.73 per tonne ($8.65 /bu.),
HRS at $314.10 per tonne ($8.55/bu.), and SRW at $297.77 per tonne ($8.10/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 uoguelph.ca
AgriLink website : www.ridgetownc.com/agrilink 
-------------- next part --------------
A non-text attachment was scrubbed...
Name: Wheatcom.docx
Type: application/vnd.openxmlformats-officedocument.wordprocessingml.document
Size: 321188 bytes
Desc: not available
URL: <http://lists.sentex.ca/pipermail/farmmarketnews/attachments/20120830/6f2d5588/attachment-0001.bin>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: Wheatcom.pdf
Type: application/pdf
Size: 319570 bytes
Desc: not available
URL: <http://lists.sentex.ca/pipermail/farmmarketnews/attachments/20120830/6f2d5588/attachment-0001.pdf>
-------------- next part --------------
An embedded and charset-unspecified text was scrubbed...
Name: Wheatcom.txt
URL: <http://lists.sentex.ca/pipermail/farmmarketnews/attachments/20120830/6f2d5588/attachment-0001.txt>