Grain Market Report
October 2010
GRAIN MARKET REPORT / OCTOBER 2010
SUNFLOWER: Black Oilseed supplies are adequate. New crop numbers have moved up by 30 % over the past two months. The entire edible Oil complex has strenghtened due to drought conditions in Russia who have cancelled exports to look after domestic requirements. This has put pressure on North America edible oils such as, Soya Oil, Canola Oil, and Palm Oil. Demand will remain strong as crushers and bird food processors compete to purchase material. Harvest has just begun with initial reports indicating quality material with average oil content. Complicating things further is the move of speculators entering the market divesting in world currency and moving to commodities like grain and gold. Striped Sunflower planted acres are up higher than in 2009 however the pressure on Oil Seed is spilling over to confection Sunflower market. It may be wise to cover your needs short to take advantage of reduced pressure in the market place.
NYJER SEED: Supply is adequate with normal demand. Nyjer Seed has seen some upward pressure as it moves up with other oil products. Nyjer is also used for crushing for its oil content and has moved up in sympathy with other edible oils. Taking some positions may be wise to avoid upward pressure on this commodities as well.
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. New crop is currently being harvested , wet conditions is slowing harvest , pressure will most likely spill in to the peanut market as it to is part of the edible oil complex .
MILLETS & MILOS: Milo trades with corn, which is currently experiencing upward pressure. The June USDA planting reported the second largest corn crop on record. Strong demand for corn ( or the perceived demand ) lower ending stocks and possible yield concerns due to dry conditions in August in the western corn belt has fuelled significant strength by speculators and analysts over the past 60 days . Milo will continue to move in unison with corn. Milo supplies are adequate. Millet indication has increased by 15 % over the past several weeks. Many producers have sold their wheat crop for excellent prices and have bin space and cash reserves to store the crop, increases may need to occur to encourage producers to pry open their bins. Huge grain shipments along with retired cars due to economic conditions have created a rail car shortage. To get preferential treatment on cars a premium is being charged to get access to rail cars on timely bases. This situation adds to the cost of freighting material east for further processing. Millet supplies are ample with planted acres up 10 % from 2009; traditional yields are being reported for 2010 harvest.
CORN/WHEAT: Wheat futures continue to make new highs increasing by some 63 % from May to late August 2010. The drought in Russia has fuelled much of this market. Corn harvest has begun in the southern states. Their has been substantial movement in the markets over the past 60 days. Declining crop conditions around the world is threatening to reduce US corn stocks in reserve to below 10 % of annual usage. When this type of report occurs it creates significant strength in the market. Locally supply is adequate pricing is moderate with local elevators discounting corn due to a large local crop anticipated this fall.
CANADIAN DOLLAR: As the global economy slowly improves commodities such as crude oil, gold and grains will increase in value. Canada has a fairly stable economy and has high levels of commodities that will impact our currency positively. Long term the out look for the Canadian dollar remains very strong. Over the past two years it has become apparent that we live in a global
economy. Drought conditions in Russia, economic strife, speculators moving funds in and out of commodities all effect what we pay for local grains. This situation does create new challenges for us all and affects how we position and purchase grains and other
inputs.
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.
