[Farmmarketnews] Wednesday Ontario Commodity Report & Ahmed Chilmeran Grain Commentary

Farm Market News - Ontario Commodity Report farmmarketnews at lists.sentex.ca
Wed Feb 27 16:22:41 EST 2013


FARM MARKET NEWS - ONTARIO COMMODITY REPORT FOR Wed, February 27
(All Bases in CAD)
Bank of Canada Noon exchange rate was 1.025 down 0.0030
Chicago corn closed narrowly mixed.

      MAY13   HI 6.98  3/4                    DEC13    HI 5.58  1/2
             LOW 6.91  1/4                            LOW 5.52
            CLOSE6.95  1/4  Up  1/2                 CLOSE 5.53  3/4  Down 2 1/2

            OLD CROP BASIS                          NEW CROP BASIS
Location    Spot   1mt   2mt   3mt  Adj $/bu   $/mt Cntrct  Adj   $/bu   $/mt
ELEVATORS        +MAY13+JUL13+JUL13
CK Low      -0.45                        6.50 255.99 -0.75         4.79 188.48
CK High     -0.36                        6.59 259.54 -0.70         4.84 190.44
CK Avg      -0.41                  -0.58 6.54 257.57 -0.71 -0.85   4.83 190.12
Essex Cty   -0.40                        6.55 257.96 -0.70         4.84 190.44
Mdsx Low    -0.45                        6.50 255.99 -0.70         4.84 190.44
Mdsx High   -0.40                        6.55 257.96 -0.70         4.84 190.44
Mdsx Avg    -0.43                  -0.59 6.53 256.98 -0.70 -0.84   4.84 190.44
Hensall     -0.45                        6.50 255.99 -0.70         4.84 190.44
Bruce       -0.45                        6.50 255.99 -0.70         4.84 190.44
Putnam      -0.36                        6.59 259.54 -0.70         4.84 190.44
Burford     -0.40                        6.55 257.96 -0.70         4.84 190.44
Port Perry  -0.50                        6.45 254.02 -0.75         4.79 188.48
Norfolk     -0.40                        6.55 257.96 -0.70         4.84 190.44
Palmerston  -0.45                        6.50 255.99 -0.70         4.84 190.44
Varna       -0.45                        6.50 255.99 -0.70         4.84 190.44
Trenton     -0.50                        6.45 254.02 -0.70         4.84 190.44
Winchester  -0.40                        6.55 257.96 -0.65         4.89 192.41
North Gower -0.55                        6.40 252.06 -0.58         4.96 195.17
Huron FOB   -0.40                        6.55 257.96 -0.70         4.84 190.44
Kent FOB    -0.40                        6.55 257.96 -0.70         4.84 190.44
Lamb FOB    -0.40                        6.55 257.96 -0.70         4.84 190.44
Mdsx FOB    -0.40 -0.40 -0.30 -0.30      6.55 257.96 -0.70         4.84 190.44
FOB SW Que  -0.25                        6.70 263.87 -0.35         5.19 204.22
Track       -0.15                        6.80 267.80N/A
PROCESSORS
Chat-Eth    N/A  N/A   N/A   N/A                    N/A
Jhnstwn-Eth N/A  N/A   N/A   N/A                    N/A
Aylmer-Eth  N/A  N/A   N/A    -0.40                   N/A
Sarn-Eth    -0.35 -0.35 -0.15 -0.15      6.60 259.93N/A
Cllngwd-Eth N/A  N/A   N/A   N/A                     N/A*
London-Ing  N/A  N/A    -0.10 -0.05                  -0.55         4.99 196.35
Pt.Colb-Ing N/A  N/A   N/A     0.00                  -0.50         5.04 198.32
Cardnl-Ing  N/A  N/A   N/A   N/A                     -0.45         5.09 200.29
W O Feed    -0.04                  -0.07 6.91 272.13

US Rep       0.75                   0.72 7.70 303.23
Toledo El.   0.23                        7.18 282.58 -0.34         5.20 204.67

TRANSFER
Sarnia      N/A                                     N/A
Pt. Stanley -0.40                        6.55 257.96 -0.75         4.79188 1/2
Hamilton    -0.45                        6.50256     -0.45         5.09200 2/7

MID SD CRN  -0.40   1/2                  6.54 3/4
HI SD CRN   -0.36                        6.59 1/4
*Wet Bid


Bank of Canada Noon exchange rate was 1.025 down 0.0030
Chicago soybeans closed mixed.

       MAY13   HI 14.48  3/4          NOV13    HI 12.63  1/4
              LOW 14.25                       LOW 12.48
             CLOSE14.39  1/2  Up 7 3/4      CLOSE 12.57  1/4  Down  1/2

             OLD CROP                             NEW CROP
Location     Basis 1mt  2mt  3mt Adj.  $/bu  $/mt BasisAdj.  $/bu  $/mt
ELEVATORS         +MAY1+JUL1+JUL13
CK Low       -0.10                    14.30 525.25-0.50     12.07 443.59
CK High      -0.05                    14.35 527.09-0.40     12.17 447.26
CK Average   -0.07               -0.4214.32 526.29-0.47-0.7912.11 444.81
Essex Cty    0.00                     14.40 528.93-0.28     12.29 451.67
Mdsx Low     -0.08                    14.32 525.99-0.47     12.10 444.69
Mdsx High    -0.05                    14.35 527.09-0.45     12.12 445.43
Mdsx Average -0.07               -0.4114.33 526.54-0.46-0.7912.11 445.06
Hensall      -0.08                    14.32 526.17-0.45     12.12 445.43
Bruce        -0.05                    14.35 527.09-0.45     12.12 445.43
Putnam       -0.10                    14.30 525.25-0.50     12.07 443.59
Burford      -0.08                    14.32 525.99-0.47     12.10 444.69
Port Perry   -0.11                    14.29 524.88-0.50     12.07 443.59
Norfolk      0.00                     14.40 528.93-0.43     12.14 446.16
Palmerston   -0.10                    14.30 525.25-0.45     12.12 445.43
Varna        -0.10                    14.30 525.25-0.45     12.12 445.43
Trenton      -0.22                    14.18 520.84-0.42     12.15 446.53
Winchester   -0.25                    14.15 519.74-0.30     12.27 450.94
North Gower  -0.12                    14.28 524.52-0.33     12.24 449.83
Huron FOB    0.00                     14.40 528.93-0.35     12.22 449.10
Kent FOB     -0.05                    14.35 527.09-0.48     12.09 444.32
Lambton FOB  -0.05                    14.35 527.09-0.48     12.09 444.32
Middlesex FOB0.02 0.06 0.06  N/A      14.42 529.66-0.31     12.26 450.57

PROCESSORS
Hamilton     0.45 0.50 0.50  N/A      14.85 545.460.05      12.62 463.80
Windsor      0.23 0.23 0.23 0.23      14.63 537.38-0.05     12.52 460.12
Winchester    N/A                                  N/A

TRANSFER
Hamilton     0.42  N/A  N/A  N/A      14.82 544.360.12      12.69 466.37
Pt. Stanley   N/A                                  N/A
Sarnia        N/A                                  N/A
Owen Sound    N/A                                  N/A
Sorel QC     0.35                     14.75 541.790.35      12.92 474.82

Toledo El.   0.07                     14.47 531.56-0.39     12.18 447.63


Bank of Canada Noon exchange rate was 1.025 down 0.0030
Chicago wheat closed slightly higher.
MAY13      HI         7.22              JUL13   HI      7.24  1/2
           LOW    7.09  3/4                     LOW        7.13
           CLOSE  7.12   Up 1                   CLOSE   7.15   Up 1

Minni wheat closed slightly lower.
MAY13      HI     8.08  1/2             SEP13   HI         8.19
           LOW    7.95  1/4                     LOW        8.06
           CLOSE  7.96  1/2  Down 2 1/4         CLOSE   8.06   Down 3 1/2

GFO Cash Wheat Prices - DEL Terminal
Current Crop 12   Soft White(C)  Hard Red(C)    Soft Red(C)    Red Spring(M)
Basis                -0.44         -0.24           -0.60         -0.78
CAD $/bu              6.68          6.88            6.52          7.18
CAD $/tonne         245.33        252.86          239.69        263.96


Direct MarkHarvest 2012                 Harvest 2013
           DELIVERED BASIS              DELIVERED BASIS
Location   SWW(C) HRW(C)  SRW(C) HRS(M) SWW(C)  HRW(C)  SRW(C) HRS(M)
ELEVATORS
Brgssvll     N/A    N/A    -0.70   N/A    N/A    -0.85   -0.95   N/A
London      -0.60  -0.66   -0.71   N/A   -0.55   -0.71   -0.91   N/A
Hensall     -0.45   N/A    -0.70   N/A   -0.50    N/A    -0.95   N/A
Trenton      N/A    N/A     N/A    N/A    N/A     N/A    -1.30   N/A
Winchester   N/A    N/A     N/A    N/A    N/A     N/A     N/A   -0.90
Essex        N/A    N/A    -0.74   N/A    N/A     N/A    -0.98   N/A
Norwich     -0.45   N/A    -0.70   N/A   -0.50    N/A    -0.95   N/A
Mt. Elgin    N/A    N/A     N/A    N/A    N/A     N/A     N/A    N/A
Kent Bridge -0.55   N/A    -0.75   N/A   -0.55    N/A    -0.95   N/A
Chatham      N/A   -0.60   -0.70   N/A    N/A    -0.85   -1.15   N/A
Brigden      N/A   -0.60   -0.70   N/A    N/A    -0.85   -1.15   N/A
Palmerston   N/A   -0.46   -0.72  -0.68   N/A    -0.72   -0.97  -0.73
Varna       -0.40  -0.50   -0.65   N/A   -0.50   -0.85   -0.95   N/A
Mitchell    -0.45  -0.70   -0.70   N/A   -0.50   -0.85   -0.95   N/A
Thornton     N/A    N/A     N/A   -1.02   N/A     N/A     N/A    N/A
North Gower  N/A    N/A     N/A   -0.76   N/A     N/A     N/A   -0.75

TERMINAL
Sarnia       N/A    N/A     N/A    N/A    N/A     N/A     N/A    N/A
Hamilton     N/A    N/A    -0.13   N/A    N/A     N/A    -0.65   N/A
Pt. Stanley  N/A    N/A     N/A    N/A    N/A     N/A     N/A    N/A

PROCESSORS
Toledo FM  N/A    N/A        0.22N/A        0.60N/A       -0.02N/A

Toledo El. 6.79US         6.95CA        6.92US          7.10CA

GFO Contract Wheat Prices - DEL Terminal
Harvest 13        Soft White(C)  Hard Red(C)    Soft Red(C)    Red Spring(M)
Basis                -0.28         -0.22           -0.74         -0.71
CAD $/bu              6.87          6.93            6.41          7.35
CAD $/tonne         252.60        254.48          235.63        269.94

(C)-Basis over the Chicago Board of Trade futures
(M)-Basis over the Minneapolis Grain Exchange

FEED GRAINS
Bayport Wheat             360.00 - 365.00
Bayport Oats              350.00
Bayport Barley            330.00
FOB Hm Soymeal            503.32 - 512.14
DDG's FOB Srn, Wndr, Aylm 285.00 - 290.00


Wednesday February 27, 2013			
Commodity	Period	Price  	Weekly Movement - Wednesday to Friday	 	 
 	 	 	 	 	 
Corn CBOT	May	6.9525	↑	4.25	cents
Soybeans CBOT	May	14.3950	↓	44.50	cents
Wheat CBOT	May	7.1200	↓	10.50	cents
Wheat Minn.	May	7.9650	↓	14.25	cents
Wheat Kansas	May	7.4275	↓	14.50	cents
 	 	 	 	 	 
Canadian $	June	0.9751	↓	22.00	points

A Statistics Canada report on investment in construction, machinery and equipment estimates growth will be 1.7% in 2013, the smallest increase since the economic downturn in 2009. The main contributor to the decline is lower growth in the mining and oil and gas extraction sector. However, public sector capital spending is expected to rise by 5% to $88 billion, the second consecutive increase. Agriculture and Agri-Food Canada released three reports discussing the outlook of the agriculture sector. The reports were entitled the Farm Income Forecast for 2012 and 2013, the Medium Term Outlook, and the Farm Income, Financial Conditions and Government Assistance Data Book 2012. They all give a positive overview of the financial health of the sector in the year ahead. Oil prices are rising with West Texas Intermediate finding support from positive US goods and housing data. The loonie seems to be holding well against the greenback’s upward momentum.
Corn
Corn futures were trading higher at midday in Chicago over positive ethanol data. Ethanol production for the week ending February 22nd averaged 812,000 bpd, a 1.9% increase over last week. According to Information Consulting ltd., feed demand by China may possibly rise in the near term over concerns in demand shortage before fall harvest. Wet weather in northern China has increased moisture in farmers’ unsold grain, making it more vulnerable to mould and less suitable for animal consumption according to Yigu Information Consulting ltd. The USDA expects the crop will be an all-time high following the worst drought in seven decades.
Soybeans
Soybean futures were trading slightly higher. According to CME, traders are showing interest in buying the July contract over the November contract. Futures are also finding support from the long delays to load soybean vessels in Brazil. US basis was slightly weaker as the barge markets back off slightly and domestic crush margins contract modestly. South American weather conditions are mixed with current drier conditions in Argentina easing later this week. Brazil continues to see a favourable mix of scattered showers and warmer temperatures
WHEAT
Wheat futures were positive over a continued climb in export demand of US soft wheat. Wheat is also finding support from positive corn movement, with better ethanol consumption numbers. The Canadian Wheat Board (CWB), which was one of the world's biggest grain marketers, hedged much of the price risk using the three major wheat exchanges. The CWB's hedging strategy has moved to a wider number of smaller grain marketers and buyers in recent times. These recent developments mean the major exchanges are struggling to secure trading volume.
Contract prices for February 27, 2013 at 4pm, are as follows:
SWW at $245.68 per tonne ($6.69 /bu), HRW at $253.22 per tonne ($6.89/bu.),
HRS at $264.33 per tonne ($7.19/bu), and SRW at $240.02 per tonne ($6.53/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 
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