Grain Market Report
October 2009
GRAIN MARKET REPORT / October 2009
SUNFLOWER: Black Oilseed supplies are adequate. Pricing is somewhat softer than earlier this year as we see all commodities slowly work their way down to historical levels. USDA planting report shows a 21% decline of Oilseed acres in the spring of 2009 as well as a 13% decline in Striped Sunflower acres. A warm September was required to bring the crop to maturity and it would seem this has occurred in most areas. Indications are there will be an average crop to harvest this fall. Demand has been somewhat off pace compared to the past few months. Pricing to the producers are currently at five year average levels with stable pricing anticipated.
NYJER SEED: Supply is adequate with slow demand. Pricing is at traditional levels where ownership of some of your needs for the winter and spring 2009/2010 selling season may be prudent.
PEANUTS: Supplies are getting tight and pricing is very firm. With the slow down of the economy, demand for human edible product is down. Processing volumes are reduced which results in peanut processors incurring 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. The USDA report indicated that planted acreage for 2009 is down 28% from the previous year.
MILLETS & MILOS: Milo trades with corn, which is currently experiencing downward pressure. Milo will continue to move in sympathy with corn. With frost scares mostly behind us, annalists are predicting the third largest corn harvest on record. If this occurs, it will continue to put pressure on Milo for the foreseeable future. Millet pricing has also reduced substantially over the past few months. Planted acres were reported to be down some 22%. However, a large crop in 2008 is expected to carry over into 2009/2010. We see pricing levels stable and supply adequate in the upcoming 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 planted corn acres are 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. Poor margins in the livestock sector of both beef and pork, as well as a sluggish economy have reduced domestic consumption.
We are at the lowest corn pricing levels we have seen in quiet some time.
CANADIAN DOLLAR: Recent strengthening in the oil sector and commodity markets has given us a stronger CDN dollar. At the time of writing, we are at a 1.08 or 92.5 cents value against the US dollar. 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 what they has postponed due to the slow economy. One 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.
