Wednesday May 18, 2011



Commodity
Period
Price  
Weekly Movement




Corn CBOT
July
7.49 ¾            
?
72 ½   
cents
Soybeans CBOT
July
13.79 ½      
?
47 ¼    
cents
Wheat CBOT
July 
8.17     
?
58
cents
Wheat Minn.
July 
9.96 ¼       
?
71  
cents
Wheat Kansas
July 
9.38     
?
38
cents
 
 
 


 
Canadian $
Jun. 
1.0277  
?
120
points
CORN
Corn planting continued to be a challenge on both sides of the border this past week. Rains in Ontario have slowed activities, though recent dry weather helped in some areas with lighter soils. In areas with heavier soils, very little corn has been planted. In the U.S. planting continues to lag their five year average.
Futures prices have recently strengthened on the expectation that the cool wet weather has delayed plantings, which could result in less corn acres than originally anticipated.  With such a small carry-over to this next crop year, a large crop would be necessary to rebuild inventories; any delay fuels concern of a smaller than expected harvest.
SOYBEANS
Soybean planting is pegged at 22 percent, down from the five-year average of 31 percent. Of this, Indiana stands at just 6 percent planted, while Minnesota is at 9 percent, North Dakota at 2 percent, Ohio at 3 percent and South Dakota at 5 percent. 
The NOPA monthly crush report showed April soybeans crushed at 121.33 million bushels, which was well below trade expectations. This was down from 134.4 million in March and 131.7 million bushels last year. With the lower crush, soybean oil stocks came in at just 2.694 billion pounds, which was down from 3.059 billion last month and 2.811 billion last year. The tighter than expected oil stocks and firm palm prices overnight supported the solid gains for soybean oil.
WHEAT
Wheat harvest has begun in the southern U.S.  Early results from Texas indicate that the HRW has good test weight and very good protein levels. Oklahoma is harvesting two weeks ahead of normal, which gives us an indication of how the drought has affected the wheat in this state. The National Weather Service estimates that, in the past two months less than half than normal has fallen in Texas, Oklahoma and Kansas.
 
Spring wheat planting is well below the five year average, with just 36 percent complete versus 76 on average. The key spring wheat state of North Dakota has planted 15 percent of their expected acreage, as compared to their five year average of 68 percent complete by this date.
Current contract prices for May 18, 2011 at the close of the markets are as follows:
SWW at $264.92 per tonne ($7.21 /bu.), SRW at $277.42 per tonne ($7.55 /bu.), HRW at $288.13 per tonne ($7.84 /bu.), and HRS at $350.34 per tonne ($9.53 /bu.).

       Ontario Grain Market Commentary for May 18, 2011
       By Todd Austin, Grain Farmers of Ontario