Manitoba corn locked in sideways trading mode

CNS Canada –– Manitoba corn appears locked into a sideways trading range for the foreseeable future, according to one industry watcher.

From where the president of the Manitoba Corn Growers Association sits, it’s not surprising, given commodities’ bearish nature these days.

“It’s not super-rosy; the (weak Canadian) dollar helps a bit, but we would like to see it a little higher,” said Myron Krahn, who farms at Carman, Man.

In particular, he said, producers would like to see at least 50 cents more a bushel for their corn.

Manitoba corn currently goes for $4.50 a bushel, Krahn said, with a firmly established trading range of $4.30 up to “probably $4.60 or $4.70.”

With the onset of winter, the only corn available is likely deep in storage.

“Once you get to this time of year, farmers have it in the bin, tucked away; guys are less willing to sell at the lower end of this sideways range,” he said.

Most producers to whom Krahn spoke reported a decent year, with stronger yields than last year’s.

“It sounds like in some of the areas production will be up from last year, but we’re still waiting on some government numbers.”

Most Manitoba-grown corn winds up in feed mills or at Husky Energy’s ethanol plant at Minnedosa, Man.

— Dave Sims writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.