Wednesday April 25, 2012 



Commodity
Period
Price  
Weekly Movement - Wednesday to Friday
 
 
 
 
 
 
 
 
Corn CBOT
May
6.1650
?
9.25
cents
Soybeans CBOT
May
14.7350
?
65.25
cents
Wheat CBOT
May
6.1650
?
5.75
cents
Wheat Minn.
July
7.8600
?
15.00
cents
Wheat Kansas
May
6.3200
?
6.00
cents
 
 
 
 
 
 
Canadian $
June
1.0150
?
76.00
points
The UK economy looks like it’s on its way to a recession as the statistics from the past two consecutive quarters suggest. The economy shrank by 0.3% in the fourth quarter of 2011, and by 0.2% in the first three months of 2012. The US Federal Reserve indicated it will leave interest rates on hold until at least the end of 2014. The Fed described the economy as growing moderately while unemployment rate had declined it remains of high concern. US inflation was largely attributed to a spike in energy costs and will impact price growth in the short run. Economists at Scotia Bank Capital indicated there is plenty of evidence that house debt growth in Canada is slowing despite worries to the contrary. The inflation adjusted Canadian mortgage debt growth is increasing at a diminishing rate at a pace similar to that of the weakness experienced in the 1990’s. They suggest that the Bank of Canada should maintain low interest rates for the time being.
 CORN
Corn futures were expected to open higher Wednesday on the back of soaring soybeans and export sales of corn to China however, corn was firm for the most part. The USDA indicated that exporters had sold 682,500 tonnes of American corn with 262,500 tonnes headed for China, the remaining amount is speculated to be also heading east. Ontario acres are expected to be 2.24 million acres, so far there is approximately 30-40% planted.
SOYBEANS
Soybean initially rose in Chicago supported by tight supplies after a severe drought curbed Argentinian grain forecasts. Soybeans rose to their highest in almost four years on Wednesday, building on the previous session's rally on expectations of strong demand for US soybeans after cuts in forecasts for South American crops. Expected acreage in Ontario could reach 2.5 million acres, which would surpass the record acreage in 2010.
WHEAT
Wheat slightly edged upwards in Chicago. Canadian farmers will plant nearly a million acres more wheat than anticipated in the first year of an open grain market, according to Statistics Canada. Drier weather in Western Canada, stretching back to last summer, brought millions of previously flooded acres back into production this spring, lifting crop planting. Wheat plantings may rise in the region of 13% in Canada this year. There has been some Ontario winter wheat acres that have been sacrificed in favour of planting corn or soybean especially for wheat planted in tough conditions and heavier soils.
Contract prices for April 25th, 2012 at close, are as follows:
SWW at $219.55 per tonne ($5.98/bu.), HRW at $246.70 per tonne ($6.71 /bu.),
HRS at $270.78 per tonne ($7.37 /bu.), and SRW at $223.17 per tonne ($6.07 /bu.).
       Ontario Grain Market Commentary for April 25, 2012
       By Ahmed Chilmeran, Grain Farmers of Ontario