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from Michigan to travel into Canadian grain

processors in Sarnia, Windsor, and London.

At which point, Ontario’s premium priced

grain market would simply be overwhelmed

by the potential supply of U.S. inflows.

Ontario’s geographical advantage in terms

of marine access to international markets

has a certain seasonality to it. We don’t use

railroads or trucks to ship grain to Europe

or Carribean destinations. It’s entirely

dependent on the Great Lakes — St Lawrence

seaway shipping lanes. Obviously winter ice

causes the marine shipping channel to be

ineffective for the first three months of the

year, so we typically see our biggest stretches

above U.S. replacement commodity prices in

the fall and spring when the bidding in the

export markets is the most enthusiastic.

The teeter-totter that Ontario grain producers

need to monitor and manage as they plan

out their marketing strategy for grains and

oilseeds is to watch for the opportunities

which recognize our natural geographic

advantage in terms of easy access to the

world market, while observing the price gap

between our end users and lower priced U.S.

KEY GRAIN PORTS WITHIN THE GREAT

LAKES AND ST. LAWRENCE SEAWAY

SYSTEM.

continued from page 6

origins which could slide in and backfill our

demand from behind. An important number to

always have in mind is the U.S. replacement

cost, which is what it would take to bring

replacement corn or soybeans into your sales

market, and then have the discipline to make

sales in the time windows when export demand

stretches our values out to our regions full

locational advantage.

Stephen Kell is the business manager —

branch grain for Parrish & Heimbecker. He

has 25 years of experience in the Ontario

grain industry.

ä

Location

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Toledo, OH

2 Sarnia, ON

3 Goderich, ON

4 Hamilton, ON

5 Port Colborne, ON

6 Port of Johnstown, ON

7 Montreal, QC

8 Trois-Rivieres, QC

9 Sorel, QC

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