Monthly Archives:: February 2018

February 28 Grain Market Update

 

By Tom Bovee, CHS New Horizons Grain Procurement

 

Argentina is all the rage and all eyes are focused on it, as the country has driven the market well beyond most forecasters’ expectations. Rain makes grain; therefore, this week was the first time someone lowered expected bean yields out of Argentina since the drought started. This also shows us just how resilient people believe these crops can be. Still, any reduction in yield means more of an export market for those looking to export beans.  Beans are $0.74 higher and corn $0.25 higher than they were on Jan 1st. Funds have now started to go long  on beans and corn, positioning themselves to defend this rally. Slow planting progress on Brazil’s 2nd crop is leading corn to new highs. It appears Brazil is as wet as Argentina is dry.

Marketing: Beans seem to find a high during the day/night before trailing off before the close of each market. This is the prime example of why you need to have offers in place with your marketer. Corn looks to finally test the magic $4.00 futures number as we push on that wall of resistance. It’s a large hurdle but one that, if overcome, should lead us to some great opportunities. As always with a weather driven market, be ready to make a move.

For more on the current state of the markets and what contracting opportunities are available, contact a member of your CHS New Horizons 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

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

White Mold Management Practices

By Brian Oachs, CHS Agronomy Sales Representative

Last year, a number of areas within our trade territory had the ideal conditions for white mold, with wet and humid weather conditions.  If you’re wondering how to reduce your risk of white mold, keep the below tips in mind as you make your plans for 2018.

  • Identify which fields you saw white mold in last year and the year prior. Sclerotia, the fungus that causes white mold, can survive in soybean residue and in the soil, making it important to note where it has existed in the past.
  • Give consideration to your crop rotation. If white mold is a big issue on specific acres, consider giving an extra year before you plant soybeans on those acres again.
  • Make your soybean selection carefully. Choose a bean with a higher white mold tolerance, or look for a plant that growers taller with less foliage to trap in moisture.
  • Plant in wider rows. Greater row spacing allows for more air movement between the plants, decreasing the environment that white mold thrives in.
  • Consider fungicide or herbicide applications, as appropriate.

Concerned about the potential for white mold on your acres in 2018?  Curious what seed options there are to help set your field up on the right foot?  Contact your Agronomy Sales Representative for additional information.

Winds of change in China

global agriculture

By Joe Lardy, research manager, CHS Hedging

China has had a long-standing policy to be self-sufficient in key food source production, including rice, wheat and corn. In 2004, the Chinese government made historic adjustments to its agriculture policy when it eliminated taxes on agriculture and created a new system of subsidies for key commodities. The subsidies supported seed and machinery purchases and resulted in improved infrastructure.

This set the stage for a huge buildup of acreage devoted to corn production. (more…)

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