Anatomy of a grain trade

anatomy of a grain trade infographic

The global grain trading business is risky. Avalanches and mudslides can stop trains in their tracks. Striking union workers can halt grain loading at port. Freezing sea spray and high swells can delay ocean vessels for days. Commodity prices and costs shift constantly.

While those situations may be beyond a grain company’s control, there are countless other factors that a team of CHS experts successfully manages 365 days a year – always focused on efficiency, safety and profitability. (more…)

CHS reports a net income of $346.7 million for the first half of fiscal 2018

CHS income fiscal 2018

 

CHS Inc., the nation’s leading farmer-owned cooperative and a global energy, grains and foods company, today reported net income of $346.7 million for the first half of its 2018 fiscal year (six-month period ended Feb. 28, 2018), compared to net income of $223.7 million for the same time period a year ago.

Consolidated revenues for the first half of fiscal 2018 were $14.9 billion, down from $15.4 billion for the first half of fiscal 2017. Pretax income was $185.0 million and $249.1 million for the first half of fiscal 2018 and 2017, respectively. (more…)

Kensington Fire & Rescue Awarded Grant from CHS Prairie Lakes

Photo (L to R): Todd Eystad, Kensington Fire and Rescue Assistant Chief & Erick Stark, CHS Prairie Lakes Hoffman Operations Manager

 

Starbuck, Minn, Kensington Fire & Rescue was awarded a Returning Value to Local Communities grant from CHS Prairie Lakes, as part of the company’s Community Funds Program.

CHS Prairie Lakes selected Todd Eystad, Assistant Chief, to receive a $1,000 grant to support the purchase of an additional thermal imaging camera.  The addition of the second thermal imaging cameral will be utilized for search and rescue during vehicle accidents, allowing responders to find anyone ejected from vehicles and get them treatment faster.

Applying schools and local community organizations are asked to state their plans for the grant money, supply general information about the project and purpose of the request, along with specific financial needs and projected outcomes. Applications for grant funding are available online at www.chsprairielakes.com.

Providing products and services in the agronomy, energy, and grain markets with locations in the communities of Elrosa, Glenwood, Hoffman, Long Prairie, Lowry, Park Rapids, and Starbuck, CHS Prairie Lakes is here to supply for your needs. For more on what’s new and to learn about other ways CHS Prairie Lakes gives back, visit us at www.chsprairielakes.com, like us on Facebook, and follow us on Twitter.

Grain Markets Update

By Tim Guza, Grain Manager

 

The big news of the week will be planting intentions on Thursday morning.  They are predicting 91 to 92 million acres of beans and about 89.5 million acres of corn.  This should be bearish for the beans and bullish for the corn but if the beans go down hard and the market wants to trade a 2.5 corn to bean ratio this could drag corn down in the nearby also.   The other thing that is causing strain on the markets is China.  The market is unsure of how China will react to President Trump’s new tariffs.  It is nice to see that the market has so far been able to hang in there.   This is probably due to good exports and that the weather in Argentina remains dry.

We will want to have ourselves positioned in front of the report on Thursday.  We should have some orders in place for Thursday crop report in case the markets give us a knee-jerk reaction or a surprise. Remember there will be no markets on Friday. Keep in mind that CHS Prairie Lakes offers a wide range of contracts to utilize in these tougher marketing times.  Contact one of our grain staff members for all your marketing needs.

 

This material has been prepared by a sales or trading employee or agent of CHS Hedging, LLC. and should be considered a solicitation.  This communication may contain privileged and/or confidential information and is intended only for the use of the individual or entity to which it is addressed.  If the reader of this message is not the intended recipient, you are hereby notified that any unauthorized dissemination, distribution, and/or use of this communication is strictly prohibited.  CHS Hedging, LLC. makes no representation or warranty regarding the correctness of any information contained herein, or the appropriateness of any transaction for any person.  There is a risk of loss when trading commodity futures and options. 

Unlock More Potential with CHS Unlocked™

By Byron Fischer, CHS Key Agronomy Specialist

There are many growth regulators on the market.  Why choose CHS Unlocked?  CHS Unlocked contains naturally derived Cytokinin, Auxins, and Gibberellins in the right balance to improve growth and development of many crops.  Having the right balance is actually of more importance than having greater amounts when it comes to plant growth regulators (PGRs).  PGRs are important because they induce cell division, stimulate cell enlargement, delay senescence (loss of cell division and growth), overcome stress and improve nutrient mobilization.

One feature that causes CHS Unlocked to stand out when compared to other products on the market is that it is naturally derived.  This enables CHS Unlocked to be in a formulation that “fits” into the plant receptors, due to its natural derivation.  This enables quicker uptake and thus increased activity.  Bottom line is increased ROI.

Below is a photo of CHS Unlocked compared to a competitive product, which was taken during the 2017 growing season at a trial in Staples, MN.  You can easily see the difference CHS Unlocked makes in the plant!

Interested in learning more about CHS Unlocked?  Contact a member of our agronomy staff for more information about this product and what else CHS can do to support your farm in 2018!

Demonstrating safety in the communities where we work

ResponsibleAg

CHS now has more than 100 ResponsibleAg certified facilities from its CHS Country Operations and CHS Agronomy divisions. Out of all U.S. fertilizer facilities receiving this certification, CHS represents 12 percent of the total.

ResponsibleAg was started in 2014 to assist agribusinesses as they sought to comply with federal environmental, health, safety and security rules regarding the safe handling and storage of fertilizer products. The rigorous application process includes a checklist of more than 320 questions about federal regulatory requirements. To be certified as a ResponsibleAg facility, locations must be 100 percent compliant with the entire checklist. (more…)

Sebeka ISD 820 Awarded Grant from CHS Prairie Lakes

 

Photo: Jill Walter, Sebeka ISD 820 Principal & Todd Readel, CHS Prairie Lakes Location Manager

Starbuck, Minn, Sebeka ISD 820 was awarded an Elementary & Secondary grant from CHS Prairie Lakes, as part of the company’s Community Funds Program.

CHS Prairie Lakes selected Jill Walter, principal, to receive a $200 grant to support field trip funding for 1st and 2nd grade students.  The field trips help to support the school mission of extending learning outside of the classroom, with first grade students visiting a local ranch and second grade students visiting Headwaters Science Center in Bemidji.

Applying schools and local community organizations are asked to state their plans for the grant money, supply general information about the project and purpose of the request, along with specific financial needs and projected outcomes. Applications for grant funding are available online at www.chsprairielakes.com.

Providing products and services in the agronomy, energy, and grain markets with locations in the communities of Elrosa, Glenwood, Hoffman, Long Prairie, Lowry, Park Rapids, and Starbuck, CHS Prairie Lakes is here to supply for your needs. For more on what’s new and to learn about other ways CHS Prairie Lakes gives back, visit us at www.chsprairielakes.com, like us on Facebook, and follow us on Twitter.

Students storm the Hill with fresh perspectives and CHS support

When people ask CHS Government Affairs staff what it’s like to work as a lobbyist in Washington, D.C., they’re always curious about how the political landscape has changed in recent years. Sarah Gallo, director, CHS Government Affairs, is happy to share anecdotes, but she’d rather discuss how the conversation about agriculture has evolved. Students, farmers and the ag industry will carry that message to Capitol Hill on National Ag Day, to be celebrated March 20 in Washington, D.C., and across the country. (more…)

February 28 Grain Market Update

By Nick Paumen, CHS Prairie Lakes Grain Marketing Specialist & CHS Hedging Broker

As I write this on the morning of February 28, corn has some good life to it!  We broke through the $4.00 December 18 futures mark and currently are at $4.03.  Corn seems to be playing follow the leader with the soybean and wheat markets (Kansas City winter wheat is up 18+ cents) and as long as those markets are up and active, corn plays along.  A grower should be giving serious thought to pricing out old crop, especially in the June and July delivery timeframes as we currently are at $3.25 cash.  If you’re in the camp that the market will continue to rise, that’s great!  However, I’d warn away from letting a market that is turning into a bull get you too greedy and wishing for the moon.  Growers should be considering selling incrementally into this rally.

By now, we all know that the Argentina weather is the main culprit driving the soybean market and I encourage growers to be making both old crop and new crop sales.  I still think that at some point we will hit a topside in this bean market and when we do it will be a hard crash down.  With Brazil still expecting a very large crop and more soybean acres anticipated in the US, it makes the soybean market the most fragile.  Don’t miss out on the opportunity to be pricing new crop beans off the field as we approach $9.50 cash, and if you think the market is going higher then have your market offers in place!

For more on the current state of the markets and what contracting opportunities are available, contact a member of your CHS Prairie Lakes grain team.

 

This material has been prepared by a sales or trading employee or agent of CHS Hedging, LLC. and should be considered a solicitation.  This communication may contain privileged and/or confidential information and is intended only for the use of the individual or entity to which it is addressed.  If the reader of this message is not the intended recipient, you are hereby notified that any unauthorized dissemination, distribution, and/or use of this communication is strictly prohibited.  CHS Hedging, LLC. makes no representation or warranty regarding the correctness of any information contained herein, or the appropriateness of any transaction for any person.  There is a risk of loss when trading commodity futures and options. 

B20 Workshop Series

B20 Workshop Series

Were you aware that beginning May 1, 2018, the minimum biodiesel requirement in Minnesota’s No. 2 diesel fuel increases to 20 percent during warm weather months?  Industry partners are hosting informational seminars in Minnesota to provide additional information on this change.  As this is a change that will impact our AFD and fuel customers, we encourage you to attend a seminar if you are able to learn more about how this will impact you.

Topics include:

  • History and overview of the law
  • Compliance
  • Diesel & biodiesel basics
  • Storage, handling, and use best practices
  • Blending in spring and fall
  • Identifying, treating and preventing common diesel issues

 

Speakers include individuals from the Minnesota Department of Agriculture, Minnesota Department of Commerce, Weights & Measures Division, and MEG Corp Fuel Consulting.

Below are the upcoming event dates and locations.  If you plan to attend, please RSVP to 952-473-0044 or Jennifer@megcorpmn.comAs always, contact your CHS energy department with any questions you may have.

Upcoming Events:

Monday, March 5

Mankato – 11:30AM to 2:00PM (lunch included)

Courtyard by Marriot Event Center: 901 Raintree Road

 

Tuesday, March 6

Worthington – 8:30AM to 11:00AM (breakfast included)

Worthington Event Center: 1447 Prairie Drive

 

Marshall – 2:30PM to 4:30PM

AmericInn Lodge & Suites: 1406 E. Lyon St

 

Wednesday, March 7

Willmar – 11:30AM to 2:00PM (lunch included)

American Legion: 220 19th Ave SW

 

Tuesday, March 13

Alexandria – 11:30AM to 2:00PM (lunch included)

Holiday Inn: 5637 Highway 29 South

 

Wednesday, March 14

Moorhead – 8:30AM to 11:00AM (breakfast included)

Courtyard by Marriott: 1080 28th Avenue South

 

Tuesday, March 20

Winona – 11:30AM to 2:00PM (lunch included)

The Plaza Hotel & Suites: 1025 Highway 61 E

 

Wednesday, March 21

Rochester – 8:30AM to 11:00AM (breakfast included)

Hampton Inn & Suites: 2870 59th Street NW

 

Albert Lea – 2:30PM to 4:30PM

Leo Carey American Legion Post 56: 142 N Broadway Ave

 

Thursday, March 22

St. Cloud – 11:30AM to 2:00PM (lunch included)

Courtyard by Marriott: 404 W St Germain St

© 2018 CHS Inc.