Wednesday March 7, 2012



Commodity
Period
Price  
Weekly Movement - Wednesday to Friday
 
 
 
 
 
 
 
 
Corn CBOT
May
6.3750
?
12.25
cents
Soybeans CBOT
May
13.2675
?
0.25
cents
Wheat CBOT
May
6.3925
?
24.50
cents
Wheat Minn.
May
8.0975
?
16.25
cents
Wheat Kansas
May
6.8375
?
21.75
cents
 
 
 
 
 
 
Canadian $
June
0.9983
?
108.00
points
The EU is scrambling to settle share and bond trades across borders. Settling trades, the final step in any deal where ownership of a bond or share is transferred to the buyer relies on a multi-trillion euro system to swap legal title to a security in return for payment. The European Commission has published the last in a series of regulations designed to tidy up the 920 trillion-euro securities market. The Europe wide system should improve safety and efficiency in the market. The TSX was slightly higher Wednesday after three days of losses from worries about a slowing global economy and the possibility of a Greek default. The loonie traded at either side of parity with its US counterpart as policy makers prepare for a meeting tomorrow at the Bank of Canada. Economists predict interest rates remaining at 1% for the 12th time.
CORN
Corn fell in Chicago from recent highs as traders adjust ahead of USDA report on Friday. China's top corn province aims at expanding its corn acreage by paring back on land for soy according to various sources. Heilongjiang produced 15% of China's total corn output in 2011, equal to the total harvest in Argentina, the world's second largest corn exporter. However China the second biggest corn consumer, will import more corn when domestic prices exceed import costs according to the president of China Grain Reserves Corp. Imports may rise to a record 7 million metric tons in the 2012-2013 marketing year from 4 million tons in 2011-2012
SOYBEANS
Soybean rose in Chicago earlier to a five month high on Wednesday, amid speculation of demand from China will remain strong in the near term. Investors are cautiously positioned ahead of Friday's closely-watched USDA world supply and demand report. Futures have rallied almost 11% since the beginning of February over distressed South American crops.

WHEAT
Wheat fell in Chicago in anticipation of Friday’s USDA report. European wheat markets were slightly weaker and under cautious trade on Wednesday. Traders see a slight drop in ending stocks for the US and the world for the supply and demand update on Friday. Libya bought 65,000 tonnes of wheat from Russia in a tender today 

Contract prices for March 7th, 2012 at close, are as follows:
SWW at $231.83 per tonne ($6.31/bu.), HRW at $263.14 per tonne ($7.16 /bu.),
HRS at $279.80 per tonne ($7.62 /bu.), and SRW at $239.20 per tonne ($6.51 /bu.).
       Ontario Grain Market Commentary for March 7, 2012
       By Ahmed Chilmeran, Grain Farmers of Ontario