Wednesday June 13, 2011



Commodity
Period
Price  
Weekly Movement




Corn CBOT
Sept
6.86 ¾ 
?
68
cents
Soybeans CBOT
Aug
13.74 ¾ 
?
52 ½ 
cents
Wheat CBOT
Sept 
7.14 ½ 
?
87 ½ 
cents
Wheat Minn.
Sept 
8.20 ¾ 
?
6 ¾ 
cents
Wheat Kansas
Sept 
7.62
?
26
cents
 
 
 


 
Canadian $
Sept. 
1.0406
?
122
points
CORN
The USDA released new carryout numbers for corn; there was an increase of 150 million bushels from last month to a level of 880 million bushels.  Considering the increased acreage of corn reported at the end of June, there was an anticipation of closer to a 1 billion bushel ending stock level for 2011/2012. The USDA, however, increased demand, bringing the estimated carry-out to 870 billion bushels.
China will probably buy 5 million tonnes of corn this year, which is up from about 2 million tons in 2010, according to the United Nations’ Food & Agriculture Organization. Increasing Chinese demand for feed ingredient consumed by hogs and chickens may offer support to Chicago prices.
SOYBEANS
The USDA reported higher carryout of soybean stocks this month versus last. A decrease in demand, especially from China, was the reason for this increase.   This higher carry-out has been offset with lower production levels for this year, due to an expected reduction in harvested area. Exports were also adjusted downwards, reflecting lower U.S. supplies. U.S. ending stocks are projected at 175 million bushels, down 15 million from previous reports.
Global oilseed production for 2011/2012 is projected at 455.5 million tons, down 1.4 million from last month.  Global soybean production is projected at 261.5 million tons, down 1.3 million. This is due to lower production in the United States.
WHEAT
U.S. winter wheat production is up 3 percent from last month, with harvested acreage unchanged. Yields were up from 0.9 bushels to 46.2 bushels per acre. U.S. Spring wheat production is forecast at 551 million bushels, down 11 percent from last year. Of this, 504 million bushels are Hard Red Spring wheat.
Global wheat supplies are projected to be slightly higher, as higher beginning stocks more than offset lower expected world production. Larger U.S. carry-in in the United States and Russia accounts for the majority of this increase.
Harvest has begun in Essex County. By all accounts the quality is good, though yields have been variable to date.
Harvest contract prices for July 13, 2011 at the close of markets are as follows:
SWW at $255.82 per tonne ($6.96/bu.), SRW at $236.41 per tonne ($6.43/bu.), HRW at $275.25 per tonne ($7.49 /bu.), and HRS at $288.05 per tonne ($7.84 /bu.).

       Ontario Grain Market Commentary for July 13, 2011
       By Todd Austin, Grain Farmers of Ontario