Grain Market Report
February 2009
SUNFLOWER: Black Oilseed supplies are adequate. The Global Oil market has fallen dramatically on all Oilseed crops. This trend will likely cease as we see bids for new crop to the producers significantly higher than today’s levels to encourage acres for 2009. Pricing will most likely remain firm over the next few months. Producers will likely store product in farm bins and be reluctant to sell at current pricing levels. Striped Sunflowers are in short supply and pricing is very strong, this trend will continue for the balance of the 2008 crop.
NYJER SEED: Over the next 60 days supplies will be very tight putting pressure on spot loads. India and Ethiopia traders are not offering product in an effort to restore pricing levels experienced in last half 2008. Rationing of shipments will occur until adequate supplies are restored in North America.
PEANUTS: Supplies are adequate and pricing is very firm. With the U.S.D.A. relaxing the grading of Human consumption
material, the quality of pick outs available for bird food is more of a challenge. We are working with a larger number of suppliers to source good quality attractive material, which displays well on the shelf and in mixes.
MILLETS & MILOS: Milo trades with corn, which is currently seeing daily fluctuations in pricing. Milo will continue to move in sympathy with corn. Millet pricing has reduced substantially over the past few months. Planted acres are up 6.1 % over 2007. Growing conditions and precipitation were better than previous years. This situation has created a much larger crop than analysist had predicted. We see pricing levels stable and supply adequate in the up coming months.
CORN/WHEAT: Wheat has recovered from its huge pricing correction experienced in the fall of 2008. We have seen dramatic price drops in the Wheat market over the past number of months. Pricing to producers is up for 2009 and we will see Wheat pricing return to more traditional five years averages. Corn market is stable with certain weeks running up in price and loosing ground the following week. The current economic difficulties have created fewer exports as well as reduced fuel demand. The Corn crop is estimated at 7 percent below 2007 levels. Once again we see a much higher price indication to the producer for 2009 to encourage acres. We expect corn to remain stable; the one concern that is currently on the minds of traders is the drought in Brazil and Argentina. If this continues and reduced acres are anticipated, all grains will become higher out of concerns of a potential short fall in production.
CANADIAN DOLLAR: Economic challenges along with continued softening of Commodity futures have left us with a very battered
CDN dollar. At time of writing we are at a 1.22 or .78 cents value against the US dollar. This is good news for manufactures and others looking for relief from the highs of mid November 2007. We will continue to see a volatile dollar until stability returns to the commodity market. The weakness of CDN dollar is putting pressure on commodities and is limiting the savings being realized in the commodity markets as all grains are priced in US dollars. Canada is rich in raw materials, metals, oils and grains. If and when these sectors see significant increases or decreases our dollar will tend to move up and down with these commodities. It has been a wild ride in the commodity sector or the past twelve months, we continue to monitor all grains on a daily bases hoping for some stability and predictability to be restored in this sector.
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.
