Wednesday February 8, 2012



Commodity
Period
Price  
Weekly Movement - Wednesday to Friday
 
 
 
 
 
 
 
 
Corn CBOT
Mar
6.4250
?
1.50
cents
Soybeans CBOT
Jan
12.3150
?
1.75
cents
Wheat CBOT
Mar
6.6075
?
1.50
cents
Wheat Minn.
Mar
8.4150
?
8.50
cents
Wheat Kansas
Mar
7.1000
?
7.50
cents
 
 
 
 
 
 
Canadian $
Mar
1.0034
?
22.00
points
The EU and IMF officials are negotiating a second financial rescue for the euro zone's most indebted state; Greece. Frustration over Greece’s economic climate continues to build as the nation’s taxes go uncollected, deficit targets are routinely missed, and job cuts from the overly inflated public sector are postponed. The EU negotiations however found the stock market up for global stocks and crude oil on Wednesday on expectations that the second bailout deal for Greece will help the country avoid a messy default and allow investors to focus on recent encouraging global economic data. Meanwhile, the loonie felt little change against the US dollar as investors await the resolution on the second Greek bailout.
 CORN
Corn initially rose in Chicago on speculation that the USDA may lower its estimate for global stockpiles in but fell later in the afternoon as the USDA report nears. According to a survey of 15 analysts by Bloomberg, the USDA may cut its estimate for corn inventories this year by 2.9% from a January’s forecast as drought curbs production in South America.
South Korea, the world’s third-biggest buyer of corn, may rebound this year as the livestock industry recovers from the nation’s worst ever outbreak of foot-and-mouth disease. The increase is expected to be upwards of 5% from last years or 6 million metric tonnes. The increase in demand from Asia may help keep corn prices up.

SOYBEANS
Soybean lost earlier gains in Chicago. The USDA may lower its estimate for South American stockpiles in its anticipated report tomorrow by 200-250 million bushels. The deficit in South American’s export market may lead to a surplus for the North American export market.

WHEAT
US wheat futures ended mostly lower on Wednesday in consolidation trade ahead of the USDA’s monthly supply and demand report which will be released Thursday. European milling wheat followed suit as the market cooled following a near eight month high this week with the mood cautious ahead of the upcoming USDA report.
	
Contract prices for February 8, 2012 at close, are as follows:
SWW at $238.30 per tonne ($6.49 /bu.), HRW at $269.42 per tonne ($7.33 /bu.),
HRS at $291.67 per tonne ($7.94 /bu.), and SRW at $245.62 per tonne ($6.68 /bu.).
       Ontario Grain Market Commentary for February 8, 2012
       By Ahmed Chilmeran, Grain Farmers of Ontario