[Farmmarketnews] Ahmed Chilmeran Grain Commentary for Wednesday, January 4, 2012

[Farm Market News - Ontario Commodity Report]

Wednesday January 4, 2011

Commodity
Period
Price  
Weekly Movement - Wednesday to Friday
 
 

 
 
 
 
 
 

Corn CBOT
Mar
6.5850
↑
17.25
cents

Soybeans CBOT
Jan
12.2150
↑
24.00
cents

Wheat CBOT
Mar
6.5000
↓
0.25
cents

Wheat Minn.
Mar
8.3900
↓
21.50
cents

Wheat Kansas
Mar
7.1400
↑
14.75
cents

 
 
 
 
 
 

Canadian $
Mar
0.9862
↑
112.00
points

 
As The EU plans to take measures against Hungary in the coming weeks for its
newly placed and conflicting central banking laws, crude oil continues to enjoy
high prices fueled by Iran’s threat of disrupting oil supplies. The threat stems
from tougher sanctions from the west towards Iran’s nuclear program. Meanwhile,
the commodity heavy TSX initially benefited from the high notes of the Iran-West
quarrel and closed higher on the first trading day of 2012. The TSX dropped
slightly on Wednesday following a drop in Oil among other commodities proceeded
by a US dismissal of Iran's threat to take action against a US aircraft carrier
in the Gulf. Economic data from Germany, China and the US showed healthy signs
on Tuesday and saw the loonie up, but later fell on Wednesday amid lower oil
prices.
CORN
Corn edged slightly lower in Chicago from a two month high. Dry weather in
Argentina, the world's second largest corn exporter has unnerved grain markets
at a time of low stocks in the US. Ongoing profit making on the back of South
American weather may be nearing its end as weather may show signs of improvement
in the coming weeks.
SOYBEANS
Soybean futures edged higher on Wednesday as investors continued to monitor the
persistent dry weather conditions in South America. According to Oil World, a
German based industry research group, South American soybean production is
expected to fall by 2.9% in the 2011-12 marketing season from the previous year
to 132.7 million metric tons. Palm oil, a substitute for soybean used in food
and energy, rallied to the highest level in more than six weeks amid the ongoing
concern in South America. As Chinese demand continues rising, the slack may be
picked up by the North American market.
 WHEAT
Wheat futures hovered close to a seven week high in their first trading session
of 2012 on Tuesday, as adverse weather conditions in Argentina boosted hopes for
an increase in overseas demand for North American supplies. However, lack of
snow in South Dakota is causing concerns for winter wheat farmers. On the
European front, the EU granted export licences for 136,000 tonnes of soft wheat
for Algeria.
 
Harvest contract prices for January 4, 2012 at close, are as follows:
 
SWW at $234.73 per tonne ($6.39/bu.), HRW at $266.40 per tonne ($7.25/bu.),
HRS at $297.69 per tonne ($8.10 /bu.), and SRW at $245.90 per tonne
($6.69/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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