Grain Market Report
January 2008
Sunflower
Pricing is continuing to move higher. In an effort to encourage more acres to get planted and to compete with other commodities, sunflower crushers and processors have had to move their bids much higher. The opportunity to beat the price increase has disappeared. The Global Oil market is keeping pressure on all Oil crops; this trend is expected to continue. Oilseed, in particular will continue to stay strong as is competes with other oil crops for acreage this spring. Producers are not willing to forward contract acres leaving processors very reluctant to sell. Usage also continues to remain strong for bird food; we have seen very strong demand for material for the past few months.
Nyjer Seed
Nyjer has decreased in price significantly in the past 3 to 4 weeks. Part of this decrease would seem to be a correction from the extreme price increases we experienced in the fall of 2007. Nyjer is typically harvested in December and January, an average to better than average crop is anticipated. Importers are offering product at reasonable levels. Suggested purchase strategy is to take a parcel position to cover your needs throughout the spring season of April to June 2008.
Peanuts
Both Peanut Pickouts and Peanuts in Shell are under pressure. Peanut Halves continue to be influenced by the very volatile oil market. Off shore shipments of in shell peanuts have also been very limited putting increased pressure on domestic inventories. I would not be caught short on peanut products as they look to stay strong over the next several months.
Millets & Milos
With very strong Wheat prices many producers will market their Wheat early and have stored their Millet. With the crop now in the bin it will take higher prices to get the crop to market. Pricing is anticipated to remain very strong over the next 12 months. Supply is not an issue and quality is average to above average.
Corn / Wheat
We are currently in the strongest Wheat market in recent history. There is a global reduction in available Wheat. This has prompted many producers to move their crop earlier than anticipated. You can expect this situation to be short lived as many acres where planted with Wheat this fall and will be again, next spring. In the short term, rationing will need to take place, this will happen automatically with higher pricing. We have had one of the largest Corn crops this past fall. Yields where average to above average. Currently the 2007 crop is selling a levels below the future price offered for 2008. With so many strong grain prices Corn needs to increase in value to encourage growers to replant Corn versus other crops such as speciality crops or Soybeans.
Canadian Dollar
Most recently the Canadian dollar has returned to levels closer to par with the U.S. currency. This is good new for manufactures and others looking for relief from the highs of mid November 2007. The one issue which has cushioned the impact of grain price increases here in Canada, is the increase in the dollar. Although welcomed by grain users it is not a guarantee that this will happen each time we see huge increases. Canada is rich in raw materials, metals, oils and grains. If and when these sectors see significant increases our dollar will tend to move up with these commodities.
If you require additional information or you would like firm pricing on a specific commodity, please contact us at 905-779-2473 or email Ken, Rob or Robbin.
