What’s going on in South America continues to have an impact on grain market prices.
Grain Farmers of Ontario analyst Ahmed Chilmeran says the lack of rain has prompted the U-N’s agriculture agency to predict Argentina is going to have a lower corn harvest this year.
That’s supported the corn prices in Chicago.
Chilmeran says the fact there was some rainfall in South America appears to have improved soybean crop prospects there.
That put soybean prices under pressure.
And the GFO analyst says speculation Russia will taper out wheat shipments through June because of a shortage of supplies fired up the North American wheat prices.
Chilmeran’s full weekly grain market commentary is posted on the Blackburn Agri-media website.
Grain Farmers of Ontario Market Commentary: Ahmed Chilmeran
The Greek dilemma continues with negotiations between Greece s private creditors and the EU nears a deadline this coming week. The negotiations revolve around averting a possible default by swapping current Greek bonds for bonds with longer maturity and lower interest rates. The debt swap if finalized will provide a 130 billion euro jolt that the EU and the IMF proposed in late October. The deal aims at chopping 100 billion euros off Greece’s 350 billion euro debt by getting bondholders to accept a 50% haircut on their holdings. However, even if the deal settles swiftly, the risk of the European Central Bank, the largest public sector holder of Greek debt looms in the background and could force the bank to write-off its holdings according to an IMF top staff. These dynamics found the S&P/TSX composite index down following the Greek debt negotiations. The International Labour Organization (ILO), a labour focused UN agency, published its annual report recently stating that the global job crisis continues with little signs of hope before 2016. The ILO also warned of a possible second recession in advanced economies during the first half of this year. On the national level, Sears Canada is cutting about 400 jobs in Canada, mostly in Ontario according to several news reports. Overall quality of jobs is deteriorating according to a CIBC World Markets report released Wednesday. Data from Statistics Canada shows that employment in the country grew by more than 180,000 people last year, but most of that growth was in the first half of 2011 and employment actually fell by 55,000 in the last quarter. The loony slipped against its counterparts amid EU anxiety.
CORN
Corn rose in Chicago to a two week high following speculation of crop losses in Argentina, the second largest exporter. According to the FAO, a UN agriculture agency, Argentina s corn harvest will fall to 21.4 million metric tons in this year from a record 23 million tons a year earlier. Global food prices look set to rise as organizations continue to slash their production estimates for the South American farming hub. The USDA s next crop report will follow on February 9th.
SOYBEANS
Soybean fell in Chicago as markets are pressured by recent rainfall in South America that is improving soybean crop prospects. Rain was noted in northern Argentina and southern Brazil yesterday. A stronger US dollar matched with lower crude oil futures are adding to weakness to the market. The USDA s next crop report will follow on February 9th.
WHEAT
Wheat rose in Chicago following a fifth straight day rise in the European markets on speculation that Russia will taper out shipments through June because of a shortage in supplies. Speculations on export limits had fired up North American wheat. European wheat also drew some support from an easing euro as concerns about Greece s debt crisis continue. The USDA s next crop report will follow on February 9th.
Tags: Crops, grain, Markets, Organizations, Trade, Weather
This entry was posted on January 27, 2012 at 8:49 am and is filed under Commentaries/Blogs, G-F-O, Midwestern Ontario, News, Ontario, Southwestern Ontario. You can follow any responses to this entry through the RSS 2.0 feed.
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South American Weather, Russian Supplies Impact Grain Markets
Grain Farmers of Ontario analyst Ahmed Chilmeran says the lack of rain has prompted the U-N’s agriculture agency to predict Argentina is going to have a lower corn harvest this year.
That’s supported the corn prices in Chicago.
Chilmeran says the fact there was some rainfall in South America appears to have improved soybean crop prospects there.
That put soybean prices under pressure.
And the GFO analyst says speculation Russia will taper out wheat shipments through June because of a shortage of supplies fired up the North American wheat prices.
Chilmeran’s full weekly grain market commentary is posted on the Blackburn Agri-media website.
Grain Farmers of Ontario Market Commentary: Ahmed Chilmeran
The Greek dilemma continues with negotiations between Greece s private creditors and the EU nears a deadline this coming week. The negotiations revolve around averting a possible default by swapping current Greek bonds for bonds with longer maturity and lower interest rates. The debt swap if finalized will provide a 130 billion euro jolt that the EU and the IMF proposed in late October. The deal aims at chopping 100 billion euros off Greece’s 350 billion euro debt by getting bondholders to accept a 50% haircut on their holdings. However, even if the deal settles swiftly, the risk of the European Central Bank, the largest public sector holder of Greek debt looms in the background and could force the bank to write-off its holdings according to an IMF top staff. These dynamics found the S&P/TSX composite index down following the Greek debt negotiations. The International Labour Organization (ILO), a labour focused UN agency, published its annual report recently stating that the global job crisis continues with little signs of hope before 2016. The ILO also warned of a possible second recession in advanced economies during the first half of this year. On the national level, Sears Canada is cutting about 400 jobs in Canada, mostly in Ontario according to several news reports. Overall quality of jobs is deteriorating according to a CIBC World Markets report released Wednesday. Data from Statistics Canada shows that employment in the country grew by more than 180,000 people last year, but most of that growth was in the first half of 2011 and employment actually fell by 55,000 in the last quarter. The loony slipped against its counterparts amid EU anxiety.
CORN
Corn rose in Chicago to a two week high following speculation of crop losses in Argentina, the second largest exporter. According to the FAO, a UN agriculture agency, Argentina s corn harvest will fall to 21.4 million metric tons in this year from a record 23 million tons a year earlier. Global food prices look set to rise as organizations continue to slash their production estimates for the South American farming hub. The USDA s next crop report will follow on February 9th.
SOYBEANS
Soybean fell in Chicago as markets are pressured by recent rainfall in South America that is improving soybean crop prospects. Rain was noted in northern Argentina and southern Brazil yesterday. A stronger US dollar matched with lower crude oil futures are adding to weakness to the market. The USDA s next crop report will follow on February 9th.
WHEAT
Wheat rose in Chicago following a fifth straight day rise in the European markets on speculation that Russia will taper out shipments through June because of a shortage in supplies. Speculations on export limits had fired up North American wheat. European wheat also drew some support from an easing euro as concerns about Greece s debt crisis continue. The USDA s next crop report will follow on February 9th.
Tags: Crops, grain, Markets, Organizations, Trade, Weather
This entry was posted on January 27, 2012 at 8:49 am and is filed under Commentaries/Blogs, G-F-O, Midwestern Ontario, News, Ontario, Southwestern Ontario. You can follow any responses to this entry through the RSS 2.0 feed.