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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