[Farmmarketnews] Ahmed Chilmeran Grain Commentary

[Farm Market News - Ontario Commodity Report]

Wednesday January 11, 2012

Commodity
Period
Price  
Weekly Movement – Friday to Wednesday
 
 

 
 
 
 
 
 

Corn CBOT
Mar
6.5125
­
3.50
cents

Soybeans CBOT
Jan
11.9750
↓
6.50
cents

Wheat CBOT
Mar
6.4100
­
11.25
cents

Wheat Minn.
Mar
8.1625
­
2.25
cents

Wheat Kansas
Mar
6.9800
­
12.00
cents

 
 
 
 
 

Canadian $
Mar
0.9792
­
34.00
points

 
Europe and Japan moved ahead Tuesday in planning for punitive cuts in oil
imports from Iran. EU governments will bring forward a foreign ministers'
meeting to decide on an oil embargo on Iran by January 23, however the bloc
remains indecisive when a ban should be imposed. Some EU states are pushing for
a long grace period before sanctions imposed. This raises the question of how
will the 27 oil dependants economies will fair after dropping a key supplier and
scramble for alternatives? Japan consulted with Saudi Arabia and the United Arab
Emirates to help it make up any shortfall in oil supplies. Anxiety about the
potential Iranian embargo pushed oil prices up. The energy-heavyTSX hit its
highest level in two months on Tuesday following a spike of imports out of
China, which rivals the EU as Iran's biggest customer for crude. This also saw
the loonie up against its US counterpart. Meanwhile, economists from the big
five banks are warning against the possibility of a housing market downturn in
major cities in Canada as a result of a potential investors buildup of
inventories. However, statistics released by CMHC recently shows little signs of
a slowdown, as the number of housing starts rose by more than 7% in last
December.
 
CORN
Corn rose slightly as Argentina, which approximately provides a fifth of the
world corn, got scattered showers early on Tuesday. The National Meteorological
Service is calling for rain late Tuesday and Wednesday in the northern part of
key agricultural hubs in Argentina. Lack of water has shrunk Argentina's corn
crop at a time when the nation is being counted on to replenish global supplies
after a lower than expected US harvest.
 
 
SOYBEANS
Soybean rose in Chicago as Argentina, which approximately provides half of the
world soyoil, got scattered showers early on Tuesday. The National
Meteorological Service is calling for rain late Tuesday and Wednesday in the
northern part of key agricultural hubs in Argentina. Lack of water has been
estimated to have shrunk Argentina's soy crop by 20% to 30%.
 WHEAT
Wheat futures edged lower on Tuesday, as traders continued to monitor the La
Nina weather patterns in major wheat producing countries in South America ahead
of the anticipated USDA report on Thursday. European wheat futures edged higher
on Tuesday, gaining momentum from the rise in crude oil and equities markets and
export expectations linked to Algeria's tender to buy milling wheat later this
week.
 
Harvest contract prices for January 11, 2012 at close, are as follows:
 
SWW at $233.43 per tonne ($6.35/bu.), HRW at $265.38 per tonne ($7.22/bu.),
HRS at $291.88 per tonne ($7.94/bu.), and SRW at $244.70 per tonne
($6.66/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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