Wednesday May 23, 2012 



Commodity
Period
Price  
Weekly Movement - Wednesday to Friday
 
 
 
 
 
 
 
 
Corn CBOT
July
6.0350
?
30.50
cents
Soybeans CBOT
July
13.6250
?
72.00
cents
Wheat CBOT
July
6.8825
?
9.25
cents
Wheat Minn.
July
7.7500
?
6.75
cents
Wheat Kansas
July
6.8975
?
1.00
cents
 
 
 
 
 
 
Canadian $
June
0.9740
?
85.00
points
Wednesday saw financial markets in North America amid pessimism ahead of the EU summit of in Brussels that would hope to succeed in coming up with a solution that contains the Eurozone’s debt crisis. European shares fell as fears of Greece leaving the EU resurfaced. Traders are speculating that money will likely continue to drift out of equities and into bonds or cash in the near future. The TSX also weighed down by a strike at Canadian Pacific, the country's second-biggest railway. However, Ottawa is prepared to return to negotiations to end the strike according to federal Labour Minister Lisa Raitt. According to the OECD’s Economic Outlook, projections show the global economy is growing, albeit slowly. Canada, Japan and the US are growing faster than the euro countries. The OECD indicated that Canada should raise its interest rates, which have been stagnant since late 2010 to avoid the inflationary repercussions of the relative speedy growth. In addition, the OECD flagged Canada as having a potential housing problem and indicated that hiking interest rates will help contain it.
CORN 
Corn futures rose initially in Chicago, while basis was weaker at river terminals and firm at processors and elevators around the US Midwest as farmers continue to delay crop sales. Corn futures held relatively firm against liquidation as traders’ awaited confirmation of the wholesale cancellations of US orders, speculation which fuelled a decline in the last trading session. US corn is approximately 96% complete as opposed to 81% this time last year.
	

	
SOYBEANS
Soybean fell in Chicago amid lackluster old crop demand and speculation that top global soy buyer China may have canceled some soy shipments due to diminishing crush margins. The news also affected the soymeal and soyoil markets adversely, depressing market prices. The economic situation in Europe and the appreciating dollar remain bearish factors for the market. US soybeans are 76% planted compared to 42% last year.
WHEAT
Wheat futures fell in Chicago for the second consecutive day on forecasts of wet weather in Russia and as traders take profits from last week’s rally in prices. Upward trending US dollar along with outside market pressures are weighing on prices as well. Weather continues to be the critical factor as hot, dry conditions are still forecasted for the US Midwest and Plains.
Grain exchanges in Chicago, Minneapolis and Kansas City have expanded to 21 hour e-trading window from 5pm to 2pm central time. Daily settlement continues during the weekday from 9:30am to 1:15pm central time.	
Contract prices for May 23rd, 2012 at close, are as follows:
SWW at $252.09 per tonne ($6.86/bu.), HRW at $280.39 per tonne ($7.55 /bu.),
HRS at $277.28 per tonne ($7.55 /bu.), and SRW at $253.98 per tonne ($6.91 /bu.).
       Ontario Grain Market Commentary for May 23, 2012
       By Ahmed Chilmeran, Grain Farmers of Ontario