Feed Grains: Corn market watching ethanol

Posted

By Commodity News Service Canada


WINNIPEG, Jan. 11 (CNS Canada) – CORN futures in Chicago

ended one cent lower on Wednesday as investors waited for the

release of the USDA’s supply and demand report on Thursday.

Favourable weather in South America was also bearish for corn.

The corn market is expected to receive some support, at

least in the short-term, from the bio-fuel market. Ethanol

exports from the US in 2016 (through November) are up 27 per

cent from the same time in 2015. Of that amount, 67 per cent was

shipped to Brazil, China and Canada.

The rains have come at long-last for South Africa’s corn

crop. The country was forced to import a massive amount of white

corn last year due to excessively dry conditions. The moisture

is most evident in the country’s interior, where the majority of

its white corn is grown. There are ideas, according to a report

from Eye-witness News, that this year’s harvest could be as much

as 13 million tonnes.

Bids for oats in Manitoba rose 19 cents overnight to a

range of C$3.16-$3.50 a bushel. Bids in Saskatchewan inched

upwards by two cents and are now going for C$2.76-$2.94 per

bushel, according to the Prairie Ag Hotwire.

Oat prices in Alberta increased by 10 cents over night and

are now going for C$2.40-$3.60 per bushel.

Feed barley bids in the key cattle feeding area of

Lethbridge, Alberta were in the C$165 to C$170 per tonne range

as of January 6, according to the latest pricing information

from the provincial government. Feed wheat prices were somewhat

higher, coming in at approximately C$185 per tonne.