Posts By: Anne Moore

Grain Market Update – October 10

Things Currently Driving the market       

It has been reported that China has offered to buy US products which is easing the tension in the trade war, which could mean continuing strength in the Soybean market. Follow that story closely because there is a lot of optimism for the bean market in the coming months. This story has also been followed by rumors of a partial trade deal with China so let’s see what happens. This could have a positive effect on the corn market as it tends to follow the bean market in relation.

Currently, the weather pattern has stayed consistent for the year as being wet, the predicted “blizzard” for North Dakota and Minnesota is also having an impact on the bean market. The window has been small for bean harvest as of late but as of Wednesday Oct. 9th beans have been consistent at 13.5% off the field. Numbers on yields have been reported lower in parts of Iowa, Illinois, and Ohio so if this stays true, we may see a bump in futures from the yield drop after harvest.

If you are reading this, you may already know the results of Thursday’s report. Current estimates are putting stocks down for corn and beans which may run the markets higher already.

Ideas:

If you are like me and are optimistic about bean futures, we may look at doing a minimum price contract.

Benefits:

Cheaper than storage.

                  Provides cash flow now.

                  Lets you participate in the market for a period and capture a gain.

                  You can’t do any worse than you get paid up front.

Disadvantages:

               Will not receive market price, will only get the price of the call.

Minimum price are 5,000 bu minimum.

Example: If you buy a $10 bean call for $0.18 and the cash price is $8.48 you will receive $8.30 (this is the minimum price you will receive). Say the market goes to $11 that $10 call may be worth $1 you sell that call back for a dollar which covers the initial cost and more. If the market were to fall you still get paid your minimum price of $8.30. If you have any questions on this call your grain originator for more details.

Pro-Advantage sign up is continuing, the deadline is December 11. I recommend trying this to diversify your marketing plan and use as a benchmark for your marketing year. There are 1 and 2 year programs and no minimum bushel amounts.

We will be starting a twice weekly grain email – Against the Grain in the coming weeks written by the CHS Larsen Grain staff. If you receive this email you will also receive the update, but if you know of anybody else wanting information let us know and we will get them on the list. They can also click here to sign-up to receive cooperative updates.

Energy Update – Going into Harvest Season

Unless you live completely off grid, you have likely heard about the drone attacks in Saudi Arabia.  These attacks took out half of the supply of the worlds largest oil processing facility.  The markets quickly reacted on Monday, posting a gain of over $8/barrel by day’s end.  Gasoline & diesel both showed almost a 10%  value increase to end the day. 

By 9 a.m. Tuesday morning, the Saudi Energy Minister held a press conference, and to everyone’s surprise he stated that the crippled processing facility should be completely restored in 14-21 days.  Within 10 minutes of this news hitting the streets, crude took a 180 degree turn, taking back almost 40% of Monday’s gains.  The crude market continued to fall over the day, ending $3.56 in the red.  Gasoline followed in crude’s footsteps, taking back more than 50% of the gains it saw the day before. 

Seems like we were on the right track, huh?  Well, though we were settling down geopolitically, the US gulf coast had different plans.  Looks like Texas is in for a little tropical storm.  TS Imelda started forming right off the gulf coast.  Eastern Texas refineries are preparing for some pretty heavy rain and flash flooding.  This has the potential to not only hinder refinery production, but there is a pretty big possibility that the Houston ship channel could be closed to marine traffic.  This is just plain old bad timing. 

Because crude oil typically reacts more from worldwide events, it continued to retreat over the next 24 hours, taking back 65% of Monday gains.  Gasoline followed crude retreating with a pretty significant loss.  But locally, diesel fuel is reacting to not only the drone attacks, but the fear of what Tropical Storm Imelda may bring to Texas’s eastern coast.  By the time final values came out Wednesday night, diesel had climbed 20% since last week’s close. 

Typically, we see higher diesel prices in the fall due to supply/demand during harvest season.  Because of the poor planting season, I think marketers expected a flatter market than normal.  However, taking the drone attacks, Tropical Storm Imelda, all of the sanctions recently put in place with China & Iran and the interest rate cut as of yesterday, fall harvest season may be more volatile than anyone could have imagined.  Hold on tight, we may be in for a wild ride!

Written by Kim Leisner, Energy Sales Manager

Grain Market Update – September 18

The grain markets have had a nice bump over the past few weeks followed by typical pull back. With a lot of uncertainty yet in the Chinese trade talks I believe it is beneficial to remain patient. New beans are over $8 for the time being, which as my dad would say is, “better than a sharp stick in the eye”. However, until something gets settled I would not expect it to make a major comeback.

As I have said it is never too early to look to next year, consider utilizing some of our programs that have no minimum bushel amounts. The Pro-Advantage program sign up is beginning now. I think it’s a good idea to put some bushels into it. Pro-Advantage is a controlled program where a third party will do background trading on your bushels to capture higher prices. It is a good way to versify your grain marketing.

As I said there are no minimums and we have the updates on our website, and you can also sign up to receive them via e-mail. Contact your grain originator for more information or to sign up for the program, as well as any other program that you may be interested in. We will be offering average price and a few other new programs that may fit your marketing needs.

Written by Michael Steingraber, CHS Grain Originator

CHS Larsen Cooperative supports Flex Farm Food Towers Initiative

Left to Right: Lisa Busse, CHS Agronomist, Steve Bartel, CHS Board Chairman, Tim Baehnman, CHS Service Technician and Weyauwega School Board Member, Drew Niehans, District Business Manager, Phillip Tubbs, District Administrator, Jodi Alix, Weyauwega-Fremont High School Principal, and Sandra Dykes, Agriscience teacher/FFA Advisor.

(September 16, 2019) – CHS Larsen Cooperative announced today a $5,000 grant to Weyauwega-Fremont High School. The funds will support the Weyauwega-Fremont Agriscience Department to purchase grow towers. The grow towers will be located in the ag department. Students from Agriscience classes will be involved in planting, monitoring and harvesting of lettuce and other vegetables. Once harvested the product will be given to the school lunch program.

“We’re proud to support this project to strengthen the community and see it thrive,” says Anne Moore, Marketing Communications Specialist, CHS Larsen Cooperative, “Projects like this are essential to enriching our rural area and the people who live here.” 

During the 2019-20 school year, the agriculture courses in the Weyauwega-Fremont School District plans to implement the use of the tower gardens to provide a minimum of 75 pounds per month of leafy vegetables to the food service program. They also plan to use these towers to make students more aware of opportunities in agriculture. Tower Garden, a vertical, aeroponic growing system, allows you to grow up to 20 vegetables, herbs, fruits and flowers in less than three square feet—indoors or out. Which makes them the perfect companion in your journey toward healthy living.

Weyauwega-Fremont wants to create a program that will allow students to not only apply all the math, science, and technology knowledge they learned in the classroom, but to also increase their love for those subjects so that they can pursue career paths in their interest areas. Agriscience classes that will have the opportunity to grow food for the school lunch program includes Horticulture, Aquaculture, Intro to Ag and all middle school ag classes. Their intent is to demonstrate to students that their learning is not compartmentalized, but rather spread across all areas of their lives. The math, science and language skills they learn will be used in all environments, whether they are simply cooking dinner or if they are out working on the job site. The other long-term impact they hope to grow is the partnership with community members and the school district. 

The school district would like to not only have this aeroponic component added, but also have plans for future expansions to this program. Their curriculum outcome and long-term impact goal is the hope that these memorable experiences will spark the interest and the drive students need to find that purpose for their learning and for our students to take ownership of their learning process and see how their knowledge will be the greatest asset they have for future success.

Funds were contributed by CHS Larsen Cooperative and were matched dollar for dollar by a CHS Seeds for Stewardship grant, which helps cooperatives grow their impact locally. Together more than $5,000 will benefit Weyauwega-Fremont School. 

“Cooperatives were founded on the principles of education, community involvement and cooperation,” says Wade Blowers, Interim General Manager, CHS Larsen Cooperative. “By combining resources, we are providing double the impact to our area and demonstrating the cooperative spirit.” 

Sandra Dykes, the Agriculture instructor at Weyauwega-Fremont says, “these towers allow our school to provide many more opportunities for our students as well as teach them how to grow their own food”.

To learn more about other ways CHS Larsen Cooperative gives back, click here.

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

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