[Farmmarketnews] Updated Ahmed Chilmeran Grain Commentary

[Farm Market News - Ontario Commodity Report]

Wednesday January 18, 2011

Commodity
Period
Price  
Weekly Movement - Wednesday to Friday
 
 

 
 
 
 
 
 

Corn CBOT
Mar
5.9300
↓
58.25
cents

Soybeans CBOT
Jan
11.8275
↓
14.75
cents

Wheat CBOT
Mar
5.9250
↓
48.50
cents

Wheat Minn.
Mar
8.0075
↓
15.50
cents

Wheat Kansas
Mar
6.5300
↓
45.00
cents

 
 
 
 
 
 

Canadian $
Mar
0.9864
↑
72.0
points

 
The IMF is seeking to boost its piggy bank by $600 billion to help member
countries reeling from the eurozone debt crisis. The IMF said in a statement it
will need $500 billion to lend and another $100 billion as a cushion. The IMF
currently has a lending capacity of about $380 billion. Emerging economies like
China and Brazil are willing to finance the Washington based lending authority
conditional on greater voting power to reflect their growing clout in the world
economy. Meanwhile, the Bank of Canada released a recent report quantifying the
spillover effect of the euro debt crisis. The report estimates that the euro
crisis is holding back national economic growth by about 0.6% or about $CAD 10
billion in GDP. The bank also predicts that European recession will last most of
2012, longer than it had predicted in its October report. How will these
predictions impact lending rates remains unknown? Some forecasts suggest the
economy will bounce back in the fall of 2013 and the current level of low
interest rate won’t remain for long. The IMF news saw the TSX higher on
Wednesday morning on rising resource and financial sector stocks. The loonie
followed suit with a rise over its American counter back.
CORN
Corn fell in Chicago on Wednesday to their lowest level in nearly a month as
rainstorms provided relief to the crops in Argentina.The crop friendly rainfall
and moderate temperatures are bringing life to the drought plagued Argentina.
South American estimates were initially cut below the levels made by the USDA in
its monthly supply and demand report last week. Weather forecasts suggest
showers throughout the week and revised crop estimates in the near future. The
fall in price is buffered by crop damage and a relatively weaker US dollar.
 
 
 
 
SOYBEANS
Soybean fell in Chicago following improved weather conditions in Argentina and
Brazil. The much anticipated showers saw global supply concerns ease over
soybean prospects. The fall in price is cushioned by crop damage and a
relatively weaker US dollar. The Hamburg based oilseeds forecasting services;
Oil World cut its forecasts for soybean crops in Argentina and Brazil by a
combined 3.8 million tonnes. This in turn may open up an opportunity to raise
demand North American soy.
WHEAT
Wheat fell in Chicago following improved weather in Argentina and Brazil.
European wheat followed suit with the Paris benchmark also saw lower on
Wednesday. The drop in wheat prices were buffered by a relatively weaker US
dollar. 
 
Harvest contract prices for January 18, 2012 at close, are as follows:
 
SWW at $213.26 per tonne ($5.80/bu.), HRW at $244.92 per tonne ($6.67/bu.),
HRS at $283.39 per tonne ($7.71 /bu.), and SRW at $224.43 per tonne
($6.11/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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