Wednesday
Dec142016

Grain News - December 2016

Patrons,

I hope you had a Happy Thanksgiving and I’d like to wish everyone a Merry Christmas. Safe travels during
the holiday season. It was a challenging fall and one that seemed to drag its way out. The guys at the scale worked hard to keep things moving as fast as possible to get your trucks back to the field. If you have any feedback about harvest, I’d like to have an open line of communication so call or stop in. Now it’s on to the off season work for us, picking up piles and shipping grain.

As we get to the end of the year, please be sure to let Pam know what money you want deferred and get the contracts signed and back to us as soon as you can. Checks will be ready to pick up at 8:00 a.m. on Tuesday January 3rd. We will be closed on the 2nd for the New Year’s holiday.

Jory Bossuyt, Grain Merchandiser

Grain Team: Pam Redetzke, Nathan Bahn, & Johnnie Brandts Jr.

Friday
Sep302016

Grain News - September 2016

EET Patrons,

I hope everyone had a great summer and enjoyed the Wood Lake Fair - I know I did. The summer flew by and all of a sudden we’re right on the verge of another harvest. We spent August cleaning bins and getting our equipment, facility, and piles ready for the new crop. Our plan is to get you in and out as quickly and safely as possible. Harvest hours will be normal business hours plus extended hours and weekends when weather and harvest pressures dictate. Just to give you an idea of hours, 7:00 a.m. – 8:00 p.m. is what we will tentatively plan on in ideal harvesting conditions. Hours will be posted on the scale window each day and my cell phone will be an open line to contact me 507-829-1531 if you have any questions about hours when we get into harvest.

Crops look great for the most part in the key U.S regions at this point. The USDA is predicting a 175.1 bpa corn yield with a total production of 15.15 billion bushels. Soybeans are projected at a 48.9 bpa yield, with total production at 4.06 billion bushels. These are some staggeringly high numbers, but with the current low prices the export and processing demand for both crops has been eating away at our supply and keeping the predicted carryout numbers fairly in check. Let’s hope this keeps a floor underneath current price levels moving forward and we get some opportunities to price grain in the black again.

This summer the board approved a few changes to our grain policies which will be implemented September 1st. Moisture and storage policies are summarized below, and full discount information is attached.

Corn

  • Drying will be 2.5 cents per half point of moisture.
  • Shrink will be 0.75% per half point of moisture.
  • Grain Bank, Cash, or Contract dried & shrunk to 15%.
  • Price Later dried & shrunk to 14%.
    • Price Later will be 3 cents/month.
    • Price Later cannot be transferred into Grain Bank, Open Storage, or a contract. Therefore, all uncontracted Corn will be put on Open Storage unless Pam or Jory is notified to put on P.L.
  • Open Storage will be dried & shrunk to 13%.
    • Open Storage is 4 cents per month, rated by the day.
  • Grain Bank is dried & Shrunk down to 15% year round.
    • 2 cents to deposit corn into G.B. (unless buying corn from EET).
    • 2 cents per month Storage charge, charged on balance remaining at the end of the month.

Soybeans

  • 1.5% shrink from 13.1-13.5% moisture, then 1% shrink per half point 13.6 & up. 
  • Price Later is 4 cents per month, rated by the day. Price Later cannot be transferred into Open Storage or a Contract.
  • Open Storage is 5 cents per month, rated by the day.
  • All Soybeans not contracted will be put into Price Later unless Pam or Jory is notified differently at the time of dumping.

I look forward to seeing how this crop turns out, and hope everyone has a great harvest. Let me know if there’s anything you need from EET as we gear up for the busy season.

Jory Bossuyt,
Grain Merchandiser

Grain Team: Pam Redetzke, Nathan Bahn & Johnnie Brandts

Tuesday
Jun072016

Grain News - June 2016

Wow - what a crazy couple months in the soybean market. I’m not sure who in the industry saw $10.70+ July futures after such stagnant trading below the $9.25 level since late last summer, but it’s given farmers some good opportunity to get close to $10.00 cash on both old and new crop bushels. We can thank the funds for fresh money being injected into the market and leading us upwards.

The May 10th USDA report surprised us by trimming the 15/16 carryout from 445 million bushels down to 400 million bushels. This is a large reduction, but still seems to be a comfortable level as evidenced by the weakness in nearby and summer basis. 16/17 carryout stands at 305 million bushels, a number that could easily be trimmed with a yield reduction below the current 46.7 BPA predicted. World carryout was also reduced, caused by continued good demand and some crop troubles down in South America.

Corn hasn’t seen quite as much volatility as soybeans, but we have been buying small amounts of New Crop around $3.40. Not quite the comfortable levels you need to cash flow, so let’s hope for some favorable levels to get bushels priced. It seems like there’s still plenty of corn tucked in the bin at home, so if I can help you move and market some old crop in the upcoming months, give me a call.

This year we’ll be accepting wheat out of the field. Check our website for the cash bids and the 2016 Wheat Policy, which is located under the Grain tab, then click Grain Policies. Since wheat discounts at the end user are always changing depending on how the crop turns out, they aren’t as clear-cut as corn & soybean discounts, but I will try to post them definitively closer to harvest. We’ll be sending samples off to state graders, so there will be a delay before we are able to pay for your wheat this year. Lastly, due to limited space and time before corn & soybean harvest, we will not have a storage or price later policy so all wheat will need to be forward contracted or will be sold at the closing price on the day it’s delivered.

Just a few reminders for you... Price later must be sold by July 31st, or it will be priced at the closing price of that day. Free Price Later must be priced by August 15th, or it will be priced at the closing price of that day.

I hope everyone had a safe and efficient planting season, and we look forward to a great growing season. Hope to see you soon in the office, around town, or in August at the Wood Lake Fair!

Jory Bossuyt
Grain Merchandiser