GFO Newsletter for March 2014
GET THE LATEST NEWS FROM GRAIN FARMERS OF ONTARIO
GRAINS ENROUTE
Grain Farmers of Ontario has developed a biofuels ad campaign to run at select ONRoute locations along Ontario’s major highways. The goal is to educate consumers about the role grain farmers play in growing the crops used in biodiesel and ethanol. It is also a way to demonstrate our support of the biodiesel industry and to acknowledge the government for their commitment to biofuels.
The 15 second ads, which debuted on February 1, will run on the television screens within the rest stations in Cambridge, Trenton, Port Hope, Barrie and King City. By summer, an estimated 8.4 million people will have seen our message. •
CFCRA NEW WEBSITE
The Canadian Field Crop Research Alliance (CFCRA) has launched a new website – www.fieldcropresearch.ca . The site provides information about the alliance, the research projects currently being funded, and links to news items. Grain Farmers of Ontario is a founding member of the CFCRA. •
JAPAN SOYBEAN PROGRAM
A Canadian Soybean Delegation completed a program to Tokyo and Osaka, Japan from January 18 – 25. It focused on further enhancing Canada’s relationship with industry associations, government officials and private corporations; promoting Canadian soybeans for food uses to potential international buyers; gathering market intelligence from end-users and government officials on soybean market trends in Japan; and gaining knowledge of new market opportunities that are available. The delegation included representatives from across the soybean value chain including producers, soybean exporters, and government officials. Representatives from Grain Farmers of Ontario were among the group as members of the Canadian Soybean Council.
The program included two large industry seminars in both Tokyo and Osaka. In tota,l over 180 representatives across the soybean value chain in Japan attended – including researchers, whole sellers, and soy food manufacturers. This year’s seminars were titled “Canadian Soybeans: A Success Story”, and highlighted Canada’s ability and commitment to deliver a high quality product to our customers. The delegation also visited with several soy food manufacturing companies where they received a tour of their facilities and gained a better understanding of the changing dynamics in the soy food industry in Japan.
Japan is Canada’s largest market for food grade soybeans and third largest market overall. On average over 350,000 metric tonnes are exported each year, valued at over $225 million. Ontario continues to be the largest exporting port for non-gmo food grade soybeans going into Japan ahead of the United States, Brazil, and Argentina. •
MARKET COMMENTARY
by Philip Shaw
The biggest story of the New Year continues to be the precipitous drop in the Canadian dollar and its effect on the cash values of grains in Ontario. The loonie in early February was trading at .9056 US, but hit a low of .8978 US on January 31. During fall harvest of 2013, the loonie was trading in the 97cent range. The lower dollar has translated into positive cash basis values for soybeans and better cash values for corn and wheat.
Corn and soybeans futures have shown much improvement over the last month as strong demand has weighed in. Wheat has been a bit more uneven, with burdensome supplies tempering upward price movement. The upcoming March 2014 USDA prospective plantings report will be key. •
