Wednesday September 21, 2011



Commodity
Period
Price  
Weekly Movement
 
 



 
 
 
Corn CBOT
Dec.
6.858
?
38.50
cents
Soybeans CBOT
Nov.
13.205
?
62.25
cents
Wheat CBOT
Dec. 
6.668
?
37.75
cents
Wheat Minn.
Dec.
8.400
?
24.75
cents
Wheat Kansas
Dec.
7.605
?
42.00
cents
 
 
 
 
 
 
Canadian $
Dec. 
0.998
?
103.00
points
According to the IMF report on Tuesday, the world economy has entered a "dangerous new phase," As a result; the international lending organization has sharply downgraded its economic outlook for the US, the euro zone, and Canada. Canada’s 2011 growth forecast of 2.8% back in April has been slashed to 2.1%, while that of the US is now sitting at 1.5% down from 2.5%. Troubles in the euro zone continue with S&P downgrading Italy’s credit ratings and Greece rushing to solve its woes with creditors through privatisations of government agencies. Emerging economies like China, India, MENA, and South America have also suffered forecast cuts, but will remain the driving force behind global growth in 2011. Recent publication by Statistics Canada concluded that while trade flows have bounced back in other countries since 2009, Canada is an exception having only recouped half of it pre-recession export levels.
CORN
Corn market has been in a bullish trend due to the less-than-ideal growing conditions with concerns of yields not meeting demand. U.S. corn futures are expected to remain high in the near foreseeable future due to demand expectations, outside market support and farmers' reluctance to sell. Chicago December corn rose 0.5% to $6.94-1/4 a bushel up from six-week low that hit earlier this week. Expectations that China set to import more corn is helping support the current market trend.
SOYBEANS
Soy futures ticked higher on Wednesday with November soybeans rising 0.2% to $13.41-3/4 a bushel as markets turned their attention to the conclusion of a two-day U.S. Federal Reserve policy meeting. Concerns over South American weather have also been of help. The North American freeze last week appears to have done more damage to soybeans in some areas than initially thought. Minnesota, the third ranked soybean growing state suffered a particular downgrade of 10 points to 51% in terms of the proportion of the crop rated in "good" or "excellent" health. Rating of the crop in North Dakota tumbled by nine points to 60%, while that in Wisconsin fell by four points to 75%. In Canada, the frost had significant impact as well with temperatures as low as minus 8 degrees Celsius in Saskatchewan. 



 WHEAT
Wheat futures are rebounding from a six-week low as adverse weather conditions in the U.S. threatened to further delay planting of winter-wheat crops. Wheat is also being supported as high corn prices are encouraging end-users to use more wheat in animal feed. Chicago December wheat rose 0.2% to $6.76-1/2 a bushel. According to The USDA weekly crop progress report, approximately 14% of the U.S. winter-wheat crop was planted compared to 19% in the same week a year earlier and below the five-year average of 20%. Kansas, the second largest U.S. winter-wheat growing state has nearly 8% of the crop planted, compared to the five-year average of 10% for this time of year. Egypt, the world’s biggest wheat buyer, plans to boost imports this year to build domestic stockpiles and prevent future political unrests fuelled by high food prices. This in turn may limit futures from slipping further this year.

Harvest contract prices for September 21, 2011 at the close of the market, are as follows:
SWW at $227.75 per tonne ($6.20 /bu.), SRW at $227.75 per tonne ($6.20 /bu.), HRW at $259.14 per tonne ($7.05 /bu.), and HRS at $306.68 per tonne ($8.35 /bu.).
       Ontario Grain Market Commentary for September 21, 2011
       By Ahmed Chilmeran, Grain Farmers of Ontario