No Surprise – Corn is Still Wet

On Thursday, September 12, the Outagamie Forage Council held their first corn silage dry down day event. Forage Council Executive Board Members John Schneider and Tom Rose, CHS Agronomist, assisted with testing samples. Kevin Jarek, Crop Soils Horticulture Agent for UW Madison Division of Extension was there to oversee and record all sample numbers.

Everyone is well aware that the corn is still wet! However, this was a good opportunity to start seeing where it was at. They received samples from Wrightstown-Freedom area as well as Stephenville to Hortonville. Most of the samples ended up being in the mid-to-high 70s. There was one sample as high as 83. (70% moisture – 30% dry matter).

When it comes to storing corn silage there are different desired moisture levels for each type of storage. Bags – 60-70%, Bunkers – 68-70%, Bank – 65-67%, Upright depends on the size but usually it should be – 65% or less.

If you interested in seeing the exact sample readings Outagamie Forage Council posts them online, this will be coming soon, click here.

The forage council will be hosting five more dry down day events. Click here to see the schedule.

New Spray Adjuvant powered by CHS Farmer-Owners

Farmers can take pride in an exclusive new line of high-performance adjuvants from CHS, knowing that they’re formulated with soybean oil refined by CHS, from soybeans grown by farmer-owners.

CHS Acuvant is a soy-enhanced spray adjuvant that improves the droplet spectrum of spray solutions without altering the viscosity. Significantly fewer fine droplets in place of more dense droplets results in next-generation drift control and deposition aid to maximize your herbicide, fungicide and insecticide investment.

As compared to crude soybean oil, CHS Acuvant has refined soybean oil, which results in less impurities with superior mixability and cold-weather stability. However, when it comes to the formulation, what’s kept out is just as important. An NPE-free adjuvant, CHS Acuvant ensures farmers can apply late-season corn fungicides at any postemergence stage without the risk of causing arrested ear syndrome.

Keep your herbicides, fungicides and insecticides on target and support our farmer-owners with soy-enhanced CHS Acuvant.

To learn more about CHS Acuvant, talk with your local agronomist.

Grain Market Update – September 5

Grain prices have steadily declined over the last month since the last report. Estimated yields and acres dropped but not enough to help prices. Hopefully you were able to capture prices on the higher end while it was available.

Looking forward it will be beneficial to watch prices for 2020 new crop if the numbers were at all accurate. The US sold a large amount of beans to Mexico but it is less than the market would like to be sold for new crop. I feel that yields will be low and we could see a spike come harvest. Also, the US and China have agreed to have “big meetings” come early October which may help drive some prices come harvest. I think it would be beneficial to be proactive instead of reactive but this year has been different all around so I think patience will be a virtue this year.

Long Term Storage Agreement Listing: a local farmer has listed the reminder of their long term storage agreement, better known as condo storage. If you have an interest in purchasing this click here to see listing or contact Mary Kay for more details. They are listing a price for just this one year or for the remaining 12 years.

Written by Michael Steingraber, CHS Grain Originator

Are You Prepared for the Future?

Back when I was a kid, it seemed like you couldn’t throw a stone without hitting a small family farm.  Single family farms past down from generation to generation-they were everywhere!  Raising just enough crops and cattle to keep the family fed, with a little extra to sell and make a decent living.  The small Husband/Wife type of farms are becoming a thing of the past.  Today’s farms are faced with the fact that they must continue to grow larger in order to keep up with the competition.  It is not only a trend, it has become a necessity!

As all farms grow, they obviously buy/rent more property, build new buildings or put additions on to existing buildings to store, not only your additional livestock, but your added equipment necessary to keep the operation running. 

During these continual times of growth, the fuel storage supply can get easily overlooked.  I have come across customers that have had the same 1000 gallon tank for fueling their tractors since their folks started the farm back in the 50’s.  In the 50’s they had two tractors using about 100 gallons a week.  They now have half a dozen tractors, a couple combines and endless other small pieces of equipment that are still using that single 1000 gallon tank.  They now can use up to an entire tank in a day or two during planting and harvest!

This kind of usage with a tank that size can become very stressful.  So much time spent, worrying about supply & contacting the fuel company trying to get extra deliveries, just to avoid downtime.  All of this stress could be easily eliminated by adding a second tank. 

By doubling the capacity at your farm, you are not only easing stress of supply concerns, but you could save a little money too!

Call your local Energy Sales Representative today and let them show you how you can benefit from adding fuel tank capacity to your operation.

Financing is also available for our members.

Written by Kim Leisner, Energy Sales Manager

Grain Market Update – August 7

Wheat Harvest 2019

The markets have been on the downward spiral the last few weeks. There is a lot of speculation on what the report will read, come Monday at 11 a.m. Many people think that the USDA did not take into consideration the prevent plant acres. That should be on this report which may cause a bump in the corn market. Markets should remain relatively flat until that point, but be proactive once they do come out with targets. You can set your own targets with our Online Target Offer Center, click here.

Weather is still moving the market to some extent. Beans are, in large part, still being effected by the Chinese trade wars one way or another. Consider doing a cash plus with beans for a little premium that may get back to the $8 range for cash prices.

Wheat was effected as of late, due to weather conditions and other countries buying wheat from others outside the US.

Long Term Storage Agreement Listing: a local farmer has listed the reminder of their long term storage agreement, better known as condo storage. If you have an interest in purchasing this click here to see listing or contact Mary Kay for more details. They are listing a price for just this one year or for the remaining 12 years.

Written by: Michael Steingraber, CHS Grain Originator

Weed Control Systems

Weed control has been on top of the mind for many growers the last year.  Troublesome weeds have started to pop up everywhere.  Because of these weeds, new methods of control have been developed and deployed for growers to use.

The team at CHS Larsen Co-op took advantage of the many acres of prevent plant to help sort out the differences in some of the weed control systems.  There are at least six different trait platforms a grower can choose from on soybeans.  This allows for a huge variation in the products that can be applied post emerge.  In addition to the base chemistries behind the systems, there’s an infinite amount of surfactant to go with. 

We took a deep dive investigation into the surfactants that go with the base systems.  This is where the interesting things happened.  Just by changing surfactant,  a grower’s weed control could be affected by 50%.  Choosing the right surfactant is almost as important as the base chemistry.  The Enlist ™ and Xtend® programs offered the best weed control when coupled with CHS Level Best.  Please contact your agronomist for more information. 

Written by: Jeremy Hunt, CCA, Agronomy Sales Manager

New app puts CHS activity at your fingertips

farmer loggin in to MyCHS

Time. We never seem to have enough of it.  And every new tech tool seems to just add another online destination with a singular purpose. But not for CHS patrons. With a simple single sign-on, producers can see their CHS business activity all in one place, even if they have multiple accounts. Contracts, bookings, prepays, scale tickets, payment history and more for agronomy, energy, grain and seed business can be viewed, sorted – even downloaded – from anywhere, anytime. All from one, web-based app: MyCHS.

The biggest advantage? Saving time. CHS transactions are a touch away – whether in front of a laptop in a farm office, on a tablet in the field or on a phone in the tractor cab.

“I can customize what I can see,” says Lucas Goodwin, Minnesota farmer and MyCHS user. “Filtering is easy. And navigating between all the separate components, like the contracts and the settlements, is logical and quick.”

Lucas was among a group of CHS customers picked to give app feedback in small focus groups and then as a beta user, comparing the new MyCHS with the former Customer Resources tool. Getting customer feedback early and ongoing during the development process was critical to making sure the web-based app fit the way today’s farmer wants to use technology.

“It’s a nice upgrade,” he concludes of MyCHS. He was a user of the former application. The recent upgrade provides all producers doing business with CHS with the data they need to make timely, information-rich decisions.

“Our CHS producers have continued to advance and look for ways to become the best they can be in some of the toughest markets they’ve experienced,” says Megan Schmit, director, Grain Procurement for CHS Country Operations division. “Even our producers who may not have called themselves tech savvy are using more and more tools to better their operation and MyCHS is giving them access to their total business with us, not just grain.”

Megan was part of the CHS team helping connect with farmers and finding out what would serve their information needs.

“I’m excited that we’re not stopping here,” she adds. “We’re going to continually take feedback from our producers and employees to keep improving and enhancing this tool for years to come.”

MyCHS is a free web-based app, available to any farmer or rancher doing business with CHS. It’s easy to register here and start seeing what MyCHS can do to help you.

Grain Market Update – July 24

The corn market has been a bit of a roller coaster these last few weeks. The market is currently running off weather until the next report on August 12, which should give us an accurate depiction of the crops that are out there and how beans and corn will progress through the year. China trade talks are still in discussion, if they do buy beans we could see a return on the bean market.

Do not be afraid to look to next year’s crop already, I still believe we need to be proactive. 2020 new crop corn is still hanging around the $3.75 mark and it may not be a bad idea to set your bench mark at that level. Consider doing an HTA (set futures now and wait for basis to narrow then apply the basis).

Leadership Change Update

Employees were informed July 17 that Gerry Baker from CHS Elburn is going to be our Interim Grain Manager in this time of transition.

The CHS Larsen Cooperative Grain team came together and met with four individuals from CHS Elburn in late July. The team from CHS Elburn will be collaborating with CHS Larsen to ensure all management duties are covered.

CHS Elburn is based in Illinois and handles 150-160 million bushels annually. They have two ethanol plants and one river terminal grain outlet. They have five grain facilities, including one in southern Wisconsin. This knowledgeable team will be a great resource to utilize during this time as they are well versed in grain marketing. Your local grain originator will still be your on-farm contact

The seamless sharing of people resources across CHS businesses, when needed, is a good reminder of the value of our CHS cooperative system.

Any questions call us in the grain department, we are more than willing to help.

Thank you!

Mike Steingraber

CHS reports $54.6 million of net income for third quarter of fiscal 2019

Company reports net income of $650.9 million for first nine months of fiscal year

CHS Inc. today announced its financial results for the third quarter and the first nine months of fiscal year 2019.

CHS reported:

  • Net income of $54.6 million for the third quarter of fiscal 2019 compared to $181.8 million for the restated third quarter of fiscal 2018. One-time pre-tax gains of $124.1 million in the restated third quarter of fiscal year 2018 were not realized in the same time period in fiscal 2019. One-time pre-tax gains of $19.2 million related to the purchase of the remaining 75 percent share of West Central Distribution, LLC were realized in the third quarter of fiscal 2019.
  • Consolidated revenues of $8.5 billion for the third quarter of fiscal 2019 compared to $9.1 billion for the restated third quarter of fiscal 2018.
  • Net income of $650.9 million for the first nine months of fiscal 2019 compared to $535.5 million for the restated first nine months of fiscal 2018, an increase of 21.5 percent.
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