Ontario’s 2023 big corn crop is delivering exactly what analysts suspected would turn prices into cash, but it’s not a rosy picture.
Phil Shaw, a market analyst and farmer in Dresden, Ont., said he didn’t even see a post-harvest seasonal increase, which is a little surprising, and that Ontario farmers are looking forward to seeing exports recover or prices rise. He said he still has large amounts of corn in storage until things recover. do.
Cash prices for old crop corn are hovering around $4.70 to $5 a bushel, and beans are around $15 a bushel, a far cry from prices just 1 to 18 months ago. There is.
“Perhaps our exporters are finding significant competition in the open seas. Typically, preferential treatment is given to the United Kingdom and Ireland for corn from Ontario and Quebec…but the bidding is not as strong as it has been in past years,” he says.
While it helps for now that the Canadian dollar is stuck in the mid-$70s, Shaw said the currency risk of a rising dollar is one aspect he’s watching in the coming months. He said a stronger dollar would bring down prices in the state, something no one wants when prices are already going down.
“Old and new soybean and corn prices have increased slightly since the end of February. This may be due to speculators and other non-commercial demand covering short sales (in other words, market position However, the situation is bearish and given the amount of grain currently in the world, there is no getting away from it.”
Right now, prices for new corn are slightly more attractive than for old corn, which Shaw says is a little strange, but right now corn and bean price signals are enough to make major changes to planned acres. I don’t think so. With Ontario’s winter wheat crop in decent shape heading into the end of March, he doesn’t think corn acreage will change much from StatsCan’s latest forecast unless the planting season gets very wet.
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