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Initial prices and pool return outlook for wheat pool announced

GUELPH, ON (June 18, 2014) – Grain Farmers of Ontario is pleased to announce the initial payments and pool return outlook for the six wheat pools managed by the Wheat Marketing team. 

When assessing their options this year, producers should consider the initial prices as an advance payment on the Project Return Outlook (PRO), estimated at 65% of total value.

Grain Farmers of Ontario’s initial prices do not always provide a true comparison of value versus cash prices of wheat. The Pool Return Outlook is an estimation of (based on current market conditions) how various classes of wheat should be expected to perform in the marketplace.

Grain Farmers of Ontario’s initial PRO calculations for the 2014 wheat marketing year are as follows:

Wheat Class Pool Return Outlook
Soft White Winter (Pool A) $223.00
Hard Red Winter (Pool B) $235.00
Hard Red Spring (Pool C) $250.00
Soft Red Wheat (Pool E) $219.00
Hard Red (Pool F) $219.00

“The Pool allows growers to move grain at harvest, while still taking advantage of grain markets post-harvest,” says Todd Austin, Manager of Wheat Marketing at Grain Farmers of Ontario. “It spreads out cash flow, and historically hits market average or better, so it can be a good insurance policy.”

Grain Farmers of Ontario will issue and periodically update the Pool Return Outlook, or PRO for all classes of wheat. The PRO is a price indication based on current nearby and forward markets, and is an indication or projection of potential returns based on current prices and economic conditions.

Grain Farmers of Ontario also offers an online calculator to compare PRO return and elevator cash prices. The calculator, as well as a list of Grain Farmers of Ontario authorized agents can be found at www.gfo.ca/WheatMarketing

Pre-Pool Contracts have to be established with Grain Farmers of Ontario no later than August 16th. For more information, call 1-800-265-0550 or visit www.gfo.ca/WheatMarketing.

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.

Contact:

Meghan Burke, Communications – 519 767-2773; mburke@gfo.ca

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Grain Market Commentary for October 18, 2017

Wednesday, October 18, 2017

Commodity Period Price Weekly Movement
Corn CBOT December 3.48  01 cents
Soybeans CBOT November 9.84  08 cents
Wheat CBOT December 4.30  01 cents
Wheat Minn. December 6.10  02 cents
Wheat Kansas December 4.28  02 cents
Chicago Oats December 2.68  06 cents
Canadian $ December 0.8025  0.10 points

Harvest 2017 prices as of the close, October 18 are as follows: SWW @ $183.15/MT ($4.98/bu), HRW @ $192.30/MT ($5.23/bu), HRS @ $238.09/MT ($6.48/bu), SRW @ $187.72/MT ($5.11/bu).

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It is that time of year again when combines are rolling. However, uneven weather in parts of the American corn belt and Ontario has delayed harvest. There is nothing particularly unusual about this as we have it every year. US crops are huge coming off the fields and the market will certainly be making further adjustments. The final determinant on yield will come in the January USDA report. However, the October USDA report released October 12th helped to re-focus the trajectory of grain prices as we head into the end of the 2017.

In the October 12th report USDA increased US national corn yield to 171.8 bushels per acre, an increase of 1.9 bushels per acre over their September estimate. This put 2017/2018-corn production at 14.28 billion bushels on the high-end of pre-report estimates. The USDA also pegged corn-ending stocks at 2.34 billion bushels, which was up 5 million bushels from their September estimate. This number was a bit of a surprise especially with which dry weather throughout the American Midwest the summer.

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