ProMarket Wire Sample Issue
	Thursday, March 1, 2012

Canola Wobbles...    Firm Cdn Fed Cattle Bids...    U.S. Wheat Sale to Iran?...    Loonie Up             Packers continue to sweat over the lack of market-ready cattle . . . And with wholesalers lining up to distribute beef to retailers for the spring grilling season, live cattle again shot higher this morning. “Some analysts suggest cattle still have another leg up into the spring market, but the market will eventually sell-off” stated a Denver broker. Packers also bid firmly for Canadian fed cattle. April live cattle angled toward a high of $131 / cwt. But a round of profit-taking and overbought signals pressured canola . . . “Traders suggest canola has simply climbed too high, too quickly. It’s due for a setback” stated a Winnipeg trader. May canola swayed between $570 to $575 / MT through the morning. But soybeans remain red-hot . . . Persistent buying interest from China pushed May soybeans toward $13.25 / bu once again. Corn and wheat prices were mostly uninspired . . . Slow weekly exports pestered U.S. corn prices. Surprising news that Iran purchased 120,000MT of U.S. wheat appeared to lift the Minneapolis spring wheat market. December Minneapolis wheat tested a high of $8.10 / bu. And stock markets continue to roll higher on falling U.S. unemployment claims . . . Americans seeking unemployment claims fell to lows not seen since March, 2008. “The U.S. manufacturing sector is certainly gearing up. Employers are hiring” a comment from New York. Cash Market Snapshot Cdn $ Spot 1.0147 up.31     Jun 1.0119 up.29     Sep 1.0098 up.29          Firm Fed Cattle Bids: Packers showing interest for Canadian finished cattle this week. In Alberta, fed steer and heifers traded between $1.15 to $1.16 ½ / lb. Packer interest from Washington state has created some competition for Canadian buyers. Strong live cattle futures appear to have steeled fed cattle offers forcing the cash market higher. Wholesale beef demand for spring BBQ season is now in its early stages.      Canola Technically Overbought: Growers note . . . when the current canola price uptrend finally breaks, canola may be in for a sharp, quick sell-off between $20 to $25 / MT (45 - 55 cents / bu). QUICK $20 TO $25 / MT SELLOFF POSSBLE FOR CANOLA AHEAD. Note: November canola $520 puts traded for $14 / MT today = $506 / MT ($11.50 / bu) floor minus fall delivered basis.      Higher Spring Flax Bids Expected: Tis the season . . . The re-opening of the St. Lawrence seaway plus Chinese buying interest should support local 1Can flax bids as we head into the Apr / May market. Currently, 1Can bids range $12.50 to $13.25 / bu for late winter farm pickup. April / May bids could improve a further 50 cents / bu. CANADIAN FLAX BIDS SEEN HIGHER INTO APR / MAY.      A Marketing Plan is Led by Farm Finances      To assess a marketing strategy suitable for a farm operation, there are three (3) key elements to review. You must take into account your ‘level of debt’, ‘bill payment schedule’ and ‘cost of production’. Integrating a marketing plan starts with the balance sheet. Your balance sheet is a snapshot of your farm's financial position at any given moment. By calculating net worth or owner's equity (assets minus liabilities), you begin to measure risk.      The debt-to-asset ratio is an important indication of your ability to bear risk. And you may want to draw up a delivery plan as well. Jot down bills to be paid, storage problems that need to be dealt with or the right price you'll accept. And of course calculating production cost is a key priority for any selling road map. Then figure out how much profit per acre you need to live on. You’ll then have some benchmarks to start from. Then set your profit targets. Take into account basis and carrying charges when setting price goals. You need to know when you need cash and what price you're looking for.      Remember, a selling road map is always changing. Each month, review your price targets. A plan helps you keep close track of inventory and evaluates your success as a marketer. Errol ProMarket Wire provides cash market opinion assisting agri-business (403) 275-5555      Cash Market Snapshot: Canola toppy? Cdn $ firm, Hogs firm, Flax firm, Edible Peas firm, Feed Barley firm, Fed Cattle firm, 2CW Oats firm, Lentils stdy, Mustard stdy, Milling Wheat stdy, Feeder cattle stdy, Canary Seed easy. ICI Futures Canada Prices: Canola, Wheat and Barley ICI Futures Canada - Options: Canola, Wheat, and Barley. CBOT Futures Prices: Corn, Soybeans, Wheat, Oats CME Futures Prices: Cattle, Hogs, etc. Late-day Stocks TSX Index 12,723 +79 Dow Jones 12,980 +28 U.S. Dollar 78.79 +.06 Energies & Metals Gold Apr 1,720.40 +6.40 Silver Mar 35.65 +.95 Crude Oil Apr 109.23 +1.71 ProMarket Wire is published weekdays by: ProMarket Communications Inc., #4 Thorncliffe Crescent NW, Calgary, AB T2K 3A9 Phone (403) 275-5555    Fax (403) 275-4228    As you know, markets will be markets. No one knows where the top or bottom lies. Promarket Wire is designed to assist in locking in profits when opportunities lie. Market recommendations are an opinion based on protecting business profit.    Copyright 1997 - 2012. All rights reserved. ProMarket Wire is protected by copyright. Copying, retransmission or redistribution without the prior written approval of ProMarket Communications is strictly prohibited; violators will be subject to prosecution.      The author(s) of this newsletter are employed by R.J. O’Brien & Associates Canada Inc. (“RJO Canada”), a Canadian regulated FCM. The content and opinions expressed within this newsletter are solely those of the authors and are not necessarily shared by RJO Canada. RJO Canada is not responsible or liable for any actions taken from use of content, expressed opinions, accuracy, forecasted projections, or any other content expressed within the newsletter. Responsibility for all content of this newsletter remains solely with ProMarket Communications Inc. (403) 275-5555.