Cenex® Premium Diesel Winter Additives

The harsh, bitter cold winter is upon us and it is going to be a long one. To help keep equipment going strong, during these brutal temperatures, you need to be using Cenex® winterized premium diesel fuels. All Cenex winter premium diesel fuels come preblended with special additives to help engines operate at their peak during these cold temperatures. 

Let’s discuss the winter fuel additives found in Cenex® premium diesel fuels; wax crystal modifiers, de-icers and wax anti-settling agents. Each one has their own importance but when they are combined, they optimize power and engine performance to minimize costly downtime.

Wax crystal modifiers
Wax crystal modifiers change the size and shape of wax crystals, from flat to pin-like structures, preventing them from bonding together. Wax crystals stay small enough to flow through the fuel filter. They create a porous wax cake on the fuel filter, allowing continued fuel flow until the engine heats up.

De-icers
De-icers dramatically lower the point at which any water in the fuel system freezes. This helps reduce moisture related problems.

Wax anti-settling agents
Wax anti-settling agents reduce the settling of wax crystals in vehicle tanks and above-ground storage tanks, which clog filters and other fuel system components.

Cenex winterized premium diesel fuels are an investment that pay for itself with cold-weather protection, fuel efficient starts, a smoother running engine and proven power. The most important difference is the one you’ll see on the bottom line. Keep your equipment operating all year long, contact your Cenex Representative to learn more about the line-up of Cenex winterized premium diesel fuels.

Article courtesy of Cenex.

Area producers share in local CHS patronage distribution

HERMAN, MINNESOTA, April 8, 2019 – Eligible farmer-owners of CHS Border States and CHS New Horizons, two retail businesses that consolidated on Sept. 1, 2018, and now form the CHS retail business based out of Herman, Minnesota, shared in the recent distribution of cash patronage and equity based on business done with the co-op.

“We’re extremely proud to share this important cooperative membership benefit with our customers,” said Jerry Kramer, general manager. “Delivering an economic return to them on the business they do with CHS is one more way we help our owners grow.”

CHS Border States allocated a total of $1,515,071.64 in patronage dividends to its eligible members based on business done Sept. 1, 2017 – Aug. 31, 2018, of which $267,713.25 is being paid out in cash. CHS New Horizons allocated a total of $2,215,658.20 in patronage dividends to its eligible members during that same time period, of which $592,958.38 is being paid out in cash.

Overall, CHS Inc. will return $150 million in cash patronage and equity redemption to its owners in 2019, part of the cooperative’s commitment to sharing profits with our owners and returning money to rural America where it can be reinvested in the community. More than 840 local cooperatives and 25,000 farmers share in this distribution of cash patronage and equity redemptions.

The percentage returned to owners is determined annually by the CHS Board of Directors.  

“Returning cash to our owners enables farmers, ranchers and cooperatives to invest in their own futures,” said Dan Schurr, chairman of the CHS Board.

In the past 12 years, CHS has returned about $3.5 billion to its owners in the form of cash patronage.

The Herman-based retail business delivers agronomy, energy and grain products and services to Minnesota and South Dakota ag producers and other customers from 19 locations. It is part of CHS Inc., a leading global agribusiness owned by farmers, ranchers and cooperatives across the United States. Diversified in energy, agronomy, grains and foods, CHS is committed to helping its customers, farmer-owners and other stakeholders grow their businesses through its domestic and global operations. CHS supplies energy, crop nutrients, grain marketing services, animal feed, food and food ingredients along with financial and risk management services. The company operates petroleum refineries/pipelines and manufactures, markets and distributes Cenex® brand refined fuels, lubricants, propane and renewable energy products.

This document and other CHS Inc. publicly available documents contain, and CHS officers and representatives may from time to time make, “forward–looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Report Act of 1995. Forward–looking statements can be identified by words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Forward–looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on CHS current beliefs, expectations and assumptions regarding the future of its businesses, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward–looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of CHS control. CHS actual results and financial condition may differ materially from those indicated in the forward–looking statements. Therefore, you should not rely on any of these forward–looking statements. Important factors that could cause CHS actual results and financial condition to differ materially from those indicated in the forward–looking statements are discussed or identified in CHS public filings made with the U.S. Securities and Exchange Commission, including in the “Risk Factors” discussion in Item 1A of CHS Annual Report on Form 10–K for the fiscal year ended August 31, 2018. Any forward–looking statements made by CHS in this document are based only on information currently available to CHS and speak only as of the date on which the statement is made. CHS undertakes no obligation to publicly update any forward–looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

CHS Lumen: Premium Starter Fertilizer

By Andy Clauson, CHS Key Agronomy Specialist

I’d like to introduce CHS Lumen as our newest premium starter fertilizer.  CHS Lumen brings the ideal nutrient ratios to in furrow technology.  With the ideal ratio of N: P being 1:3, CHS Lumen has an analysis of 5-15-3-0.1 Fe- 0.8 Zn.  Along with that ideal ratio of nutrients, CHS has also added in our patent pending Ortho-Ortho EDDHA chelate to make nutrients in the soil like phosphorus and zinc more available to the plant.  The combination of these nutrients and chelate is nothing new to the marketplace, but what makes CHS Lumen unique is the addition of the Hemicellulase enzyme.  Unlike adding microbial products to the tank which can be inconsistent and temperature dependent, the Hemicellulase enzyme is active at all temperatures above freezing.  This enzyme helps make nutrients more available to the plant as well as converting organic matter into simple sugars to kick start the microbial activity in the soil.  Standard use rates in corn and sugar beets are 3 gals/A, in soybeans 1.5 gal/A, and in potatoes 3-5 gals/A.  This is a low salt, seed safe product, but I would recommend mixing some water to get a mix of 5 gal/A or more for coverage.  Contact your local CHS agronomy sales representative with any questions about CHS Lumen.

Cenex Total Protection Plan® pays $23,000 for tractor repair

Herman, Minn farmer benefits from Cenex warranty program

Photo L to R: Mark Severance; Dustin Umlauf, CHS Energy Division Manager & Tyler Nordby

The Cenex Total Protection Plan has been in place for over 50 years. Mark Severance, Herman MN farmer, has been adding his eligible equipment to the program since 2001, around the time when the co-op in Herman began offering the program to its patrons.

Having enrolled nineteen pieces of equipment in the warranty program over the years, Severance is quick to say the program is well worth it.  “We’ve added every piece of equipment that we can [to the program],” says Severance, and over the years he’s filed a few claims.  In April 2019, Cenex Total Protection Program again proved its worth to Severance, when he was awarded a check for over $23,000 to cover the repair expense for the front planetary on one of his tractors. 

The Cenex Total Protection Plan provides peace of mind for farmers, especially during the busiest times of the year.  By using Cenex Ruby Fieldmaster Premium Diesel Fuels and Cenex lubricants, users can get up to 10 years or 10,000 hours of engine and transmission coverage for new equipment (8 years or 8,000 hours on used equipment) as an extension of the original equipment manufacturers’ warranties.  LubeScan® oil analysis fluid sample reports taken regularly through the program also identify internal equipment condition issues early to stay ahead of potential downtime. 

Enrollment in the program is simple, and at $299 for new equipment ($399 for used), the upfront cost is a small price to pay for the value the program provides.  Contact a member of the CHS Energy Department for additional information on this program and how to enroll today.

Cenex® Gift Cards for Gallons Starts November 1

Starting November 1, 2018, through February 28, 2019, you can earn one $50 VISA® gift card for every 125 gallons of lubricant and grease products purchased.

Eligible lubricant products include:

  • Maxtron® DEO
  • Maxtron® Enviro-EDGE®
  • Maxtron® GL
  • Maxtron® THF+
  • MP Gear Lube
  • Qwiklift® HTB®
  • Superlube 518®
  • Superlube TMS®

Eligible grease products include:

  • HD Moly Xtreme
  • Poly-Xtreme®
  • Maxtron® EP
  • Blue Gard® 500+™
  • Fluid Gear Grease
  • Molyplex 500+
  • ML 365®
  • Red Protect XT®
  • Maxtron® FS

 

Getting your reward is easy:

  • Complete a Gift Cards for Gallons Redemption Form (you can obtain this from your local CHS energy team), attach the qualifying sales receipt(s) or invoices, and submit by mail no later than April 6, 2019.   Contact our office with any questions!

CHS Fertilizer Plant Project in Fergus Falls, MN

Get the Project Details Here!

What will the new facility include?

When completed, CHS will have a state of the art fertilizer facility at our French location!  This facility will include the following components:

  • Faster fertilizer load out, which means we can get product to your fields over twice as fast as our current systems in both our French and Fergus East sites. This process will go from around 30 minutes currently to between 8-10 minutes with the new site.
  • Ability to impregnate 6+ products with automated impregnation system.
  • A significant increase in fertilizer storage! We’ll be moving from a combined 5,000 tons of storage between French and Fergus East to 10,890 tons of storage in the new facility, with more (and bigger) bins for individual products.
  • We’re really excited about the addition of a Sackett Waconia High Intensity Mixer. With this system, you can be confident that every blend is as uniform as possible – see what all the excitement is about by checking out their YouTube product video (if you want to skip to the good stuff, start watching at 0:50).
  • This facility will also include an 86×86’ chemical shed, with 8 bulk tanks.
  • The capacity of the tower will triple – going from 90 ton to 300 ton.
  • As with any new facility, this will be built to the latest OSHA & industry safety standards to ensure the safety of our employees, customers, and community members.

Below are a few photos of a facility that is built similarly to ours, to give an example of what it will look like:

 

When will the new facility be functional?

The site will be functional for spring fertilizer next year.

What should I do for fall fertilizer in 2018?

While the fall fertilizer process will change a little on our end as this facility is built, you shouldn’t see any changes.  Please continue to call your agronomy contact to place your fertilizer orders for fall as you have in past years.

Where will my agronomy team be located this fall?

Nothing will change for this fall – you can still contact your agronomy team in either the French or Underwood offices this fall and into this winter.

 

Interested in keeping up to date on the construction progress with the plant?  Sign up for email updates here!

Grain Markets Update

By Rich Cole, Grain Manager

 

Corn quality and railroad performance have been the two main features in the grain world lately. Robust corn exports off the PNW has created a much needed and welcome demand boost, along with some basis opportunity; but all the demand leaves us prone to railroad performance. The snow and cold temperatures that occurred along the PNW corridor in February hampered BNSF movement, slowed them down considerably, and spiked car values. This created a logistics knot that has taken quite a few weeks to untie and pushed back loadings at our elevators as we waited for cars. Recently, the BNSF has finally started catching up and has been pushing in train after train close together, making it quite a challenging situation at our locations.

Quality is the next big issue this year that we are struggling with. Early this winter it seemed the cold temperatures were causing the corn to crack and break but as the weather has warmed up we are still dealing with high amounts of FM. Perhaps this is related to growing degree days, the maturity of the corn, or maybe the speed of drying. Regardless of the reasons for it, we are continuing to struggle with quality and have a big book of trains yet to load in the coming months. We have taken discounts on everything from grades to screenings generated to demurrage on trains as loading has taken considerable effort. We appreciate your understanding and effort also as we’ve gone from sitting full waiting on trains to taking deliveries on extended hours to get these trains loaded.

From a market point of view, next up is the March 29th acreage report. Trade guesses are for the U.S. to plant more soybeans than corn for the first time in over 30 years. Time will tell what the actual numbers will be but it is certain to cause some volatility in our already volatile markets. Planting season is right around the corner and we want to wish everyone a safe and productive spring!

 

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!

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. 

3 Reasons to Complete a Farm Plan

Are you taking full advantage of the downtime between harvest and planting?  This time of the year, our agronomy team is busy working on farm plans for spring 2018.  If you haven’t completed your 2018 farm plan, here are a few reasons you should:

  • Farm plans provide you with a good idea of your input expenses, which is helpful in securing any needed funding for the upcoming planting year.
  • Creating a plan now and thinking through each of your fields makes spring go smoother. By knowing what crop you are planting where and what fertility, seed, and crop protection needs you may have on each field, you will be able to better plan for and respond to the rush of spring planting.
  • It allows us to better serve you. Knowing what products and services you will need for the upcoming year lets us ensure we are adequately prepared, having the appropriate products and adequate staff to serve you.

Talk to your personal Agronomy Sales Representative or a member of our agronomy staff to learn more about the farm planning process and to start your plan today!

© 2019 CHS Inc.