Grain Market Report
January 2010
GRAIN MARKET REPORT / January 2010
SUNFLOWER: Black Oilseed supplies are adequate. Pricing is somewhat softer than earlier this last year as we see all commodities slowly work their way down to historical levels. The continued strength of the Canadian dollar continues to keep pricing in line. New crop numbers have been posted with a strong offering to encourage acres for planting in the spring of 2010. Demand has been somewhat off pace in recent weeks. The vegetable oil market continues to remain strong, which will keep pressure on Oil Seed. Striped Sunflower numbers are very strong even though the 2009 crop was of very poor quality. This resulted in larger quanities of material finding its way into the birdfeed market. This trend will continue for most of 2010.
NYJER SEED: Supply is adequate with moderate demand. The 2009 crop is just now becoming available. There will be a shortfall in supply while importers await new crop. With no disruption in shipments, we should realize reduced numbers as we get in the late winter period. Some ownership taken now for late winter early spring arrival in 2010 would be prudent.
PEANUTS: Supplies are ample with prices declining. We are working with a larger number of suppliers to source a good quality, attractive material, which display well on the shelf and in mixes. The USDA report indicated that planted acreage for 2009 is down 28% from the previous year. This has not resulted in price increases to date. Now is a good time to take a position on Peanuts.
MILLETS & MILOS: Milo trades with corn, which is currently experiencing upward pressure. Milo will continue to move in unison with corn. Milo supplies are adequate. Millet indication has increased over the past several weeks. Very harsh weather this fall prevented producers form harvesting the Millet crop on time creating supply concerns. 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. Overall, wild bird food demand remains somewhat sluggish, capping potential increases at time of writing.
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 and well into 2010. It is estimated that ending stock of wheat will keep pricing somewhat negative. Ontario corn harvest is estimated at 80% with a portion of the crop being unharvestable . With cool growing conditions and damp weather in the summer of 2009, corn quality is poor with molds and toxins present. Supply is adequate with pricing moderate.
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 1.035 or 96.8 cents value against the US dollar. As the global economy improves, pressure is now starting to be put on crude Oil. At time of writing, the barrel is $82.66 US versus $41.70 US a barrel a year ago. If this trend continues, analysts predict we will see all commoditties increase in correlation with Crude Oil.
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 , Robert Gunstone at , Robbin Pridmore at or Ryan Zantingh 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.
