Grain Market Update, July 17 2018

By Tim Guza, Grain Manager

 

In the last couple of weeks there has been a couple of things that have been going through my mind. The first is how do we utilize our space this fall and the second is what do we think the market is going to do. Let’s start with space, we currently do not have a PNW export market for soybeans. This will keep bean basis week granted if we get the trade war settled this could change. We feel at some time china will need our beans we just don’t know when. Could this year be the year that it makes the most sense to ship corn and bin the beans? In a typical year we can pick up 30 cents to carry corn to the July. This year we could be looking at huge carries in the beans because of lack of outlets and if china comes to buy beans again from the United States they will probably rally. Each operation is different but don’t rely on what we have done in the past.

The second thing is market movement. I was asked to draw a line on sheet of paper on what I thought the market was going to do between now and harvest. My line was flat. If you are looking at having to move old crop in front of harvest or if you have a basis contract ask yourself what you think the market is going to do and price your grain accordingly. We have not had to trade a political driven market like this and the crops look good.

CHS reports net income of $229.3 million for the 3rd quarter of fiscal 2018

CHS income
CHS Inc., the nation’s leading farmer-owned cooperative and a global energy, grains and foods company, reported net income on July 11, 2018, of $229.3 million for the third quarter of its 2018 fiscal year (three-month period ended May 31, 2018), compared to a net loss of $45.2 million for the same time period a year ago.

Consolidated revenues for the third quarter of fiscal 2018 were $9.0 billion, up from $8.6 billion for the third quarter of fiscal 2017. Pretax income was $289.4 million for the third quarter of fiscal 2018, compared to a loss of $209.2 million for the same period the prior fiscal year.

“Thanks to the hard work of many throughout CHS, we’ve made great strides this year in strengthening relationships, optimizing operations and improving results from our core businesses,” said CHS President and CEO Jay Debertin. “The steps we’ve taken will better position us to navigate the inevitable cycles in agriculture and energy. I am proud of our team and their dedication and commitment to operating with excellence.” (more…)

Belgrade-Brooten-Elrosa Elementary School Receives Funding from CHS Prairie Lakes

Photo: Sheila Jaeger & Jay Heinze

 

Brooten, Minn, Belgrade-Brooten-Elrosa (BBE) Elementary School was awarded funding for the building of a Human Foosball court on their playground from CHS Prairie Lakes, as part of the company’s Community Funds Program.

CHS Prairie Lakes is helping fund this project for BBE Elementary with a $500 award. The Human Foosball court will occupy at least 20+ students at a time to promote a fun game of sportsmanship and leadership skills as well as provide exercise.

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 Market Update, July 2 2018

 

By Tim Guza, Grain Manager

 

As we start off the month of July we are looking at July delivery corn under $3.00 and beans under $8.00.  Farmers seem to have shut down selling in anticipation of what President Trump does on Friday.  If tariffs are put in place we will probably see the market remain at these levels or at numbers a little lower.  President Trump has been talking about leaving the trade agreement, which would be a sign that he is probably going put the tariffs in place.

 

We are loading our first July corn train and have three more to go this month.  It is hard to sell corn at the current cash price, but if you will need to move grain in front of harvest we typically do not see a lot of opportunity after the fifteenth of July and the basis is currently strong.  On June 20th we finished up our old crop averaging contract – it closed at $3.87 which was about 30 cents over the cash market.  We are also doing a Dec ’18 averaging contract that will close on the 1 of August.  As of today, we are at $4.02.

 

On behalf of the grain team at CHS Prairie Lakes, thank you for all of your business.

Local Firefighters Train on Propane Fires

 

Starbuck, Minn (July 3, 2018), In the event of a propane emergency, every second is important.  That’s why CHS Prairie Lakes, along with the Alexandria Technical & Community College, supported a hands-on propane fire training for area fire departments at the end of June.

During this training event, around 22 people from the Lowry fire department participated in hands-on training on how to handle a propane fire.  The training, provided by Alexandria Technical & Community College, provided an opportunity for each member of the department to work together to learn appropriate techniques for responding to a propane fire.  To end the training, CHS Prairie Lakes provided propane for a controlled live burn of a simulated propane tank, during which each participant was able to implement the training and gain practice controlling the fire.

Steve Gorder, CHS Prairie Lakes Energy Manager, spent many years as a volunteer firefighter and knows the value of these trainings.  “At CHS, we’re strong supporters of our local fire departments and want to ensure they have every tool in their toolbox necessary to feel confident when facing a propane fire.  We can’t say thank you enough for all our fire departments do to keep our communities safe and appreciate being able to support them in this way.”

As a home heat, agricultural, and commercial propane supplier, CHS Prairie Lakes is proud to support trainings and events like this that bring a greater level of safety to our community.  With locations in the communities of Elrosa, Evansville, 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 at CHS Prairie Lakes, visit us at www.chsprairielakes.com, find our page on Facebook, and follow us on Twitter.

The difference between drift and volatilization

herbicide application
Getting the most out of an herbicide application not only includes maximizing efficacy, but also minimizing damage caused by herbicides. Being aware of what can go wrong and how to avoid it can lead to effective, on-target herbicide applications and help growers have a successful growing season – without the distress and loss caused by applications gone awry.

Two threats to herbicide applications are drift and volatilization. While they may seem similar, they are quite unique and require different attention to ensure that neither occur. (more…)

July 20 Scouting Report

Curious what’s happening throughout our territory?  Members of our agronomy team weigh in below with what they’re seeing in fields so far this season.

Cory Nietfeld Scouting Report
CHS Prairie Lakes in Elrosa

It’s extremely wet in our trade territory.  Corn spraying is wrapping up, and we will be full swing on bean spraying as soon as it dries out.  Corn crop is looking pretty good.  If you haven’t side-dressed yet and plan to, it’s time to get it done!

 

Trisha Demarais Scouting Report
CHS Prairie Lakes in Park Rapids

The Park Rapids area received 3” of rain over the weekend, and our lighter soil has helped to make sure we aren’t overwet and aren’t dry.  The rain has been extremely helpful, and both corn and soybeans are looking really good.  We’re in the middle of spraying just about every crop around here currently.

June 8th Scouting Report

 

Curious what’s happening throughout our territory?  Members of our agronomy team weigh in below with what they’re seeing in fields so far this season.

 

Chuck Nolting Scouting Report
CHS Prairie Lakes in Elrosa

     Corn: We’ve seen a number of fields where the pre-emerge chemistry that was put down earlier this spring has either run out of gas or didn’t get activated due to the shortage of rainfall.  We’re currently doing a lot of post-emerge spraying on corn acres. (more…)

Soil Whisperers

White Hall, Ill., farmer Maria Cox, left, and her crop advisor Kyle Lake were named 2018 4R Advocates by The Fertilizer Institute. Photo by Erin Williams, CHS.

Adapted from C magazine article by Peg Zenk

READ MORE: Find the entire C magazine article here.

Not all risk is bad. While farmers work hard to reduce financial risk, innovators take calculated risks when it comes to new when it comes to new agronomic approaches.

Illinois farmer Maria Cox is one of those innovators. She and her crop advisor, Kyle Lake, with CHS in Carrollton, Ill., were named 2018 4R Advocates by The Fertilizer Institute. Each year, the award recognizes five farmer-retail agronomist teams who are dedicated to implementing the 4Rs of nutrient stewardship: using the right nutrient source, at the right rate, at the right time and in the right place.

In conversations with Cox and others who have actively embraced the 4Rs, common management challenges and strategies emerge. Among all the technologies and tactics they’ve tried, these growers point to strategies that are producing the biggest benefits in terms of soil health and the bottom line. (more…)

Start the New Season with a New Grease

cenex grease

Using the right grease is one of the most important decisions you can make as you prepare equipment for the high-pressure planting season. But recent updates in grease formulations might make you do a double take as you get ready for spring.

“When you put the grease into your grease gun and on bearings, you’re going to notice it looks different,” says Andrew Hamilton, director of technical services and quality for Cenex® lubricants and refined fuels. “That is on purpose. You’re getting a better grease.” (more…)

© 2018 CHS Inc.