Grain Market Report
May 2010
GRAIN MARKET REPORT / May 2010GRAIN MARKET REPORT / May 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 recent volatility of the Canadian dollar is affecting landed costs of sunflower. 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 the past few months. The vegetable oil market continues to remain strong, which will keep pressure on Oil Seed. Striped Sunflower numbers has softened due to poor quality of the 2009 crop finding it way into the bird food market. Planting is well ahead of the five year average with planted acres likely being reduced versus 2009. It would be prudent to have a position to cover the July and August period as pricing may be unstable due to the forecasted hot dry weather in the mid west.
NYJER SEED: Supply is adequate with slow demand for this time of year. With no disruption in shipments, we should see stable to slightly reduced numbers in the May to July shipping period. The high prices during the spring and summer of 2009 may have created a rationing situation with consumers.
PEANUTS: Supplies are ample with prices stable. We are working with a larger number of suppliers to source good quality, attractive material, which displays well on the shelf and in mixes. Now is a good time to take a position on Peanut products.
MILLETS & MILOS: Milo trades with corn, which is currently experiencing downward pressure. The March USDA planting intentions reported the second largest corn crop on record. Milo will continue to move in unison with corn. Milo supplies are adequate. Millet indication has stabilized over the past several weeks. Very harsh weather in the fall of 2009 prevented producers from harvesting the Millet crop on time creating supply concerns. All Millet not previously harvested is now collected creating a stable supply. 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 store are up dramatically. Wheat pricing will most likely remain soft well into the fall 2010. Corn planting has gotten of to an excellent start this spring; planting is well ahead of the 5 year average. Supply is adequate with pricing moderate. Weather experts are predicting a hot and dry summer which may create pricing pressure. It would be prudent to have a good position through July and August to avoid possible weather rallies in the grain market.
CANADIAN DOLLAR: Recent global economic concerns have put pressure on Oil and have driven are dollar down. At the time of writing, we are at a 1.06 or .94 cents value against the US dollar. The Canadian currency will remain unstable as analysis sort out the various economic factors that are creating uncertainty in the markets. Canada’s economy is commodity based as we see strength in the global economy commodities such as oil and grain will naturally increase creating a stronger Canadian dollar.
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.
