Feed: Australian drought hurts grain production

CNS Canada — Following are a few highlights in the Canadian and world feed grains markets on Thursday, Oct. 15.

• CBOT corn futures were posting small losses at midday Thursday, with the December contract quoted at US$3.77 per bushel, as the advancing U.S. harvest and relatively favourable yield reports weighed on values.

• Drought conditions in the Australian state of Victoria are forcing farmers there to abandon hopes of harvesting a grain crop. Many producers are reportedly cutting their fields early in order to salvage them as fodder for cattle.

• The U.S. Environmental Protection Agency is set to release its updated targets for renewable fuel production in the country on Nov. 30. Industry participants are of the opinion that the renewable fuel standards for corn-based ethanol will be lowered.

• Citing good agronomic results and stable gross margins, Strategie Grains is forecasting a three per cent increase in European winter barley seedings and a 0.5 per cent increase in spring barley. The large barley area is expected to come primarily at the expense of wheat.

• Shipping delays in Brazil are causing some Asian corn buyers to shift their demand to Ukraine instead. Some ships at Brazil’s Paranagua port have reportedly been waiting for 40 days.

• Feed barley bids in the key cattle feeding area of Lethbridge, Alberta are in the C$212-$220 per tonne area, according to provincial reports. Feed wheat prices are in the C$215-$228 range.

 

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