Grain Market Report
April 2009
GRAIN MARKET REPORT / April, 2009
SUNFLOWER: Black Oilseed supplies are adequate. Analysts anticipate a substantial carry over of inventory of the 2008 crop. Recent USDA planting intensions shows a 20% decline of Oilseed acres for spring of 2009. This update should make Oilseed prices 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 2009 season.
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 getting tight and pricing is very firm. With the slowing down of the economy, demand for human edible product is down. Processing volumes are reduced which, results in peanut processors with less rejects (bi-product). 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. Planting intensions for Millet is similar to 2008. Good growing conditions and timely rains will be critical to maintain stability in the Millet market. 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. Planting intensions are almost identical to 2008 levels. The anticipated carry over for the 2008 crop is 698 million bushels, which is where analysis’s predicted. We expect corn to remain firm as it continues to purchase acres from other commodities. The current wild card in the market is what will happen to the open acres this spring with so many other commodities showing reduced planting intentions.
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 1.268 or 79.3 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. A much talked about threat is inflation and higher interest rates. When the global economy starts to improve their will be a tendency for people to start purchasing putting pressure on pricing. The only way to curb inflation is to raise interest rates. No one is certain just when this will transpire but it is a situation to be aware of.
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 at , Rob Gunstone at , Robbin Pridmore at
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.
