Grain Market Report
June 2011
GRAIN MARKET REPORT / June 2011
SUNFLOWER: Oil Seed prices are reaching an all time high due to lowest planted acre intentions in twenty years, poor planting conditions due to wet weather and flooding and highest vegetable market pricing. Processors have increased their new crop bids to attract larger acres for 2011. With time running out for many other crops, producers are considering increased acres of Sunflower. The exact amount of acres planted will not be known until well into July. At time of writing, the price offered to growers is 31.20/100 US funds. The entire Edible Oil complex has strengthened due to smaller world wide inventories and strong demand from both Oil crushers and bird food packers competing for existing supplies. With pricing at an all time high, bird food retailers should consider promoting Wild Bird blends, which will be less expensive than straight Oil Seed or Striped Sunflower. The new crop offers are at a large discount to old crop and many end users will be holding out for new crop. Supply will be tight to nonexistent for the balance of 2010 old crop material. The next key report will be the June 30th USDA Planting Report, when actual acres planted will become better known. The consumer has not seen the effects of increased prices at retail for the most part. How the consumer will react to higher prices is still unclear at this time.
NYJER SEED: Supply is adequate and demand steady. Nyjer Seed has lagged behind other Oil products. However, over the past three weeks, bids have become stronger due to increased demand and crusher interests. Taking a position for your late spring and summer needs would be advisable.
PEANUTS: Supplies are becoming tighter because drought conditions are creating a concern for the quality of the 2011 crop. Quality of the 2010 crop is less desirable due to wet harvesting conditions. We are working with a larger number of suppliers to source good quality and attractive material that displays well on the shelf and in mixes. Prices have increased by 26% since the beginning of December, 2010 in sympathy with other edible oil products. Affloxtoxin levels are a concern with the 2010 crop. The WBFI recommends levels of greater than 20 ppb not be used in Wild Bird products.
MILLETS & MILOS: Milo trades with corn. End users and ethanol plants in the mid-west are starting to purchase Milo to process instead of Corn. This is putting pressure on the availability of old crop Milo. It would be prudent to take ownership of the 2010 crop. A concern for Milo is the continual decline in acres. The spring planting intention report indicated an increase in the planting intentions. However, with inclement weather, the actual amount of acres planted will be unclear until the June 30th planting report. The USDA stocks report showed stocks of Milo down 3% from 2010. The more important trend setter showed stocks of Corn down 15% below analyst’s expectations. This sent old crop corn into unseen price levels, taking Milo with it. Millet pricing has increased by 35% in the past several weeks moving up in sympathy with other grains. Millet supplies are ample. Being a specialty crop, no acreage report is available. With delayed planting of the main line crops, one can expect increased acres for 2011. Millet can be successfully planted in June, is drought tolerant and is considered a last chance crop if conditions are unfavourable for other grains.
CORN/WHEAT: Wheat futures continue to remain strong as carry over stocks are anticipated to be lower. Planting intentions for 2011 are up 8% for spring wheat. The recent crop report indicates that 75% of the crop is fair to good across the mid west. Corn stocks are at an all time low, and forecasted to reach historical lows. The March 30th USDA Report, indicated stocks to be lower than anticipated, sending the grain market stronger. At time of writing, planting progress is 5% behind 2010 levels, with a reduction in over all acres anticipated due to weather issues in the corn belt. With traditional crops such as corn and beans experiencing a delay in planting in the northern states, a potential for speciality crops increasing may exist. To get relief from current extreme market conditions, we will require timely rains along with plenty of heat to occur in the Northern hemisphere. It is generally accepted that certain areas in the mid to central US and Canada may go unplanted due to rain and flooding conditions in these areas. The dry warm planting conditions required to calm the markets did not occur this spring.
CANADIAN DOLLAR: Strong commodity sector, sluggish performance of the US economy and the improving Canadian Economy impacts our dollar very positively. Analysts are forecasting a strong Canadian currency for the foreseeable future. At time of writing, the current exchange rate is a 1.023 U.S. dollar for every Canadian dollar. Our high dollar improves our purchasing power but does curb exports.
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.
