Grain Market Report
July 2009
GRAIN MARKET REPORT / July 2009
SUNFLOWER: Black Oilseed supplies are adequate. Analysts anticipate a substantial carry over of inventory of the 2008 crop. Recent June 30th USDA planting report shows a 21% decline of Oilseed acres for spring of 2009 as well as a 13% decline in Striped Sunflower acres. Cool wet weather has resulted in late planting and a slow germination, this will result in late harvest and late delivery of new crop sunflower. These conditions will keep Oilseed prices firm over the next number of months. Striped Sunflowers are in short supply and pricing is very strong, this trend will continue for the balance of the 2009 season and well into 2010.
NYJER SEED: Supply has become more avaliable in the past few weeks. Indian based traders are not offering product in an effort to restore pricing levels experienced in last half 2008. Rationing of shipments is still a real possibility. Pricing has dropped for shipments in the fall and winter period.
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. Recent June USDA report indicated that planted acreage for 2009 is down 28% from 2008.
MILLETS & MILOS: Milo trades with corn, which is currently experiencing downward pressure. Milo will continue to move in sympathy with corn. June stocks report indicate historical levels of inventory in stock, acreage is down 15% from 2008 planting. Millet pricing has reduced substantially over the past few months. Planted acres are reported to be down some 22%, however a large crop in 2008 is expected to carry over into 2009/2010. 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: Planted acres of all wheats are down 5.6%; however stocks in storage are up 103% over 2008. Wheat pricing will most likely remain soft for the balance of 2009. Recent crop report shows that corn acres planted is up by 1.2% and corn stocks are up 6%, this is the second largest corn crop planted on record . With suitable growing conditions we can expect a large harvest in 2009. Over the past few months the wild card in the market is what would happen to the open acres this spring with so many other commodities showing reduced planting intentions. The USDA report confirms that producers have migrated back to the traditional crops with the largest Soya bean crop and the second largest corn acres planted on record.
CANADIAN DOLLAR: Recent strengthening in the Oil Sector and Commodity Markets has given us a stronger CDN dollar. At time of writing we are at a 1.16 or 86.2 cents value against the US dollar. We will continue to see a volatile dollar until stability returns to the commodity market. A much talked about threat is inflation and higher interest rates. When the global economy starts to improve there 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 that many analysts feel is a very real possibility.
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.
