Grain Market Report
January 2011
GRAIN MARKET REPORT / December 2010
SUNFLOWER: Black Oilseed supplies are adequate. Pricing to the grower’s has increased by 30% since late September 2010. At time of writing, yields are meeting historical levels with over all harvested acres anticipated to be down 4% versus 2009. Processors have increased their new crop bids to attract larger acres for 2011 in an attempt to reverse the trend of less acres. The entire edible Oil complex has strengthened due to a smaller than anticipated Soybean crop. This has put pressure on North American edible oils such as Soya Oil, Canola Oil and Sunflower Oil. Demand will remain strong as crushers and bird food processors compete to purchase material. Complicating the grain complex 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 53% higher than in 2009, however the pressure on Oil Seed is spilling over to confection Sunflower market. The battle for acres, cash rich producers who can afford to keep their crops in the bin along with a strong edible oil market will keep pressure on Oil seed for the foreseeable future.
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 price. It has become apparent that demand for Nyjer seed this past year in North America is off significantly, lower demand due to the absence of finches seems to be a common theme with many processors. When migratory patterns return to more normal, increased demand may spark resulting in increased pricing levels.
PEANUTS: Supplies are ample. Quality of the 2010 crop is less desirable due to damp harvesting condition. We are working with a larger number of suppliers to source good quality and attractive material, which displays well on the shelf and in mixes. Prices have increased by fifteen percent in the past month in sympathy with other edible oil products.
MILLETS & MILOS: Milo trades with corn, which is currently experiencing upward pressure. Strong demand for corn along with lowered ending stocks has fuelled significant strength by speculators and analysts over the past 60 days. Milo will continue to move in unison with corn. A concrn for Milo is the continual decline in acres, down fifty percent from 2000. Milo is a speciality crop, it’s relatively small acreage excludes it from seed companies and plant breeder support leaving no significant improvement in yields, resulting in no economic incentive for producers to consider Milo as a profitable crop versus other alternatives such as corn or beans. Millet pricing has increased by 30 % over the past several weeks moving up in sympathy with other grains. Millet supplies are ample with planted acres up 10% from 2009. Traditional yields per acre where harvested in 2010. 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 a timely basis. This situation adds to the cost of freighting material east for further processing.
CORN/WHEAT: Wheat futures continue to remain strong as carry over stocks are anticipated to be lower than original forecast. Corn harvest is for the most part completed. There 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. Local supply is adequate, pricing is moderate with local elevators discounting corn due to a large local crop and await export shipments.
CANADIAN DOLLAR: As the global economy slowly improves, commodities such as crude oil, gold and grains will increase in value. With recent strength in Crude Oil our currency remains strong, this trend is expected to continue. We anticipate the dollar to stay close to parity with The US currency.
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.
