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Biofuels regulations great news for Ontario's grain farmers

GUELPH, ON (February 11, 2011)  – The commitment from the government to move forward with the regulations for two percent renewable fuel content in diesel fuel is great news for Ontario’s grain farmers.

This two percent mandate will mean a demand for 500 million litres per year of bio-diesel across Canada that will boost local demand and strengthen prices for soybean and canola farmers.  This will mean more marketing options for our farmers and more jobs for Canadians – a true win-win.

“A conservative estimate of the ethanol industry’s impact on local corn prices is an increase of $0.10 to $0.25 per bushel, depending on the year and location of the farm,” said Don Kenny, chair of Grain Farmers of Ontario at the announcement in Hamilton.  “It will be a similar story for soybeans as a result of bio-diesel production.”

Farmers are not the only ones who will benefit from higher grain values as a result of the growth of the biofuels industry.  Income stability for Ontario’s grain farmers becomes money spent in our rural communities.  It also means a stronger, more sustainable provincial economy where 40,000 jobs in the supply chain depend on our production of grain.

A national investment in biodiesel production is not just an economic win for the country, but also has a significantly positive impact on the environment.  The production of crops for biodiesel can reduce our greenhouse gas emissions by 99 percent compared to fossil fuels.

“Thank you to the Canadian government for the implementation of a Renewable Fuels Strategy that will truly benefit our farmers, our rural communities and all Canadians,” summarized Kenny.

Grain Farmers of Ontario

Grain Farmers of Ontario is the province’s largest commodity organization, representing Ontario’s 28,000 corn, soybean and wheat farmers. The crops they grow cover 6 million acres of farm land across the province, generate over $2.5 billion in farm gate receipts, result in over $9 billion in economic output and are responsible for over 40,000 jobs in the province.

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Weekly Commentary

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Grain Market Commentary for August 16, 2017

Wednesday, August 16, 2017

Commodity Period Price Weekly Movement
Corn CBOT September 3.52  20 cents
Soybeans CBOT November 9.25  53 cents
Wheat CBOT September 4.20  44 cents
Wheat Minn. September 6.73  60 cents
Wheat Kansas September 4.20  24 cents
Chicago Oats September 2.60  10 cents
Canadian $ September 0.7898  0.15 points

Harvest 2017 prices as of the close, August 16 are as follows:
SWW @ $182.43/MT ($4.96/bu), HRW @ $189.46/MT ($5.16/bu),
HRS @ $254.49/MT ($6.93/bu), SRW @ $187.11/MT ($5.09/bu).

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Market Trends

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Market Trends Report for August-September 2017

Monday, August 14, 2017

US and World

It has been an uneven growing season in much of the American corn belt. The Western corn belt has been dry especially in the Dakotas, while the mid south and Eastern corn belt were inundated with heavy rains earlier in the spring. The forecast in late July turned cooler and wetter for all of the American corn belt. This new forecast essentially changed much of the outlook for the American crop, but still many analysts were expecting lower August USDA numbers reflecting some of the earlier tough conditions for US corn and soybeans. Anticipation of the August 10th USDA report was filled with expectations of lower yield projections.

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On August 10th, the USDA lowered their projected corn yield estimate to 169.5 bushels per acre down from their earlier projection of 170.7 bushels per acre and less than last year's 174.6 bushels per acre. At the same time the USDA raised soybean yield expectations to 49.4 bushels per acre up from their 48 bushels per acre earlier estimate. This pegged 2017/18-soybean production at 4.4 billion bushels. Both of these USDA estimates rocked the grain market August 10th, as it was a big surprise. With so much uneven weather affecting this crop in the field a US corn yield of 165-166 bushels per acre was a general trade estimate. Futures prices plummeted on this very bearish report.

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