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

Tuesday
Mar292016

Grain News - March 2016

Patrons,

By the time you get our newsletter in the mail, we should be seeing some mild March weather. Seems crazy to me that another planting season is less than a couple months out!

We now have both of our piles picked up and in good condition, and we are offering Free Price Later as space allows. Corn will be dried and shrunk to 14% moisture, and must be priced by August 15th or it will be priced at the closing price of that day.

At the time of writing this, corn has been stuck in about a 25 cent range since the New Year, and soybeans have stuck to just under a 40 cent range. A slightly bearish Feb 9th USDA Supply/Demand Report luckily didn’t push much to the downside and funds still hold a large short position. These are a couple bright spots in the overall commodity picture. However, the U.S. Dollar has remained fairly strong while competing export countries’ currencies have stayed weak. It also seems like South American crops are developing well at this time. I wish I had a better outlook, but at this time there’s nothing too promising in the near term.

Basis has backed off since the first of the year as the processor seems to have enough ownership in the nearby months. Some ethanol plants have quit buying corn through April and are only posting contract overrun bids. Luckily we have not seen that too close to our area. Soybean crush margins haven’t been too great, which isn’t helping the soybean processor bid either.

We are offering the EET Grain/Agronomy Loyalty Program again for the 2016 crop! If you aren’t aware of it, please ask Brooks or myself for more details. Summary below...

  • To qualify for a $0.10/bu bonus on corn on up to 175 bu/acre on eligible acres, you must purchase $100/Acre of fertilizer and chemical inputs from EET.
  • To qualify for a $0.10/bu bonus on soybeans on up to 60 bu/acre on eligible acres, you must purchase $30/Acre of herbicide and insecticide from EET.
  • This is not locking your crop into being sold at EET; if there is a better market that you want to sell into, you are able to do that.

Tom, Brooks and I will be bringing in a trader from FC Stone for a marketing meeting on Wednesday March 30th at 10:30 a.m. This will be a pre-report look at the Quarterly Grain Stocks and Prospective Plantings USDA reports that come out the next day, along with a look at livestock markets. Brooks will also give a quick Agronomy update for the upcoming season. We will provide lunch. Please let us know if you plan to attend so we have an idea of the number attending. Hope to see you there!

I hope everyone has a safe planting season with minimal delays or breakdowns. We could use it with prices like these.

Jory Bossuyt
Grain Merchandiser

Saturday
Jan092016

Merchant's Plus Program

Equity Elevator is offering a corn and soybean marketing program through FC Stone called the Merchant’s Plus Program. Merchant’s Plus is a program that you sign up new crop bushels, and then FC Stone’s experts market those bushels trying to get the highest futures price that they can.

  • Increments of 2,500 bushels, with a 2,500 bushel minimum.
  • Pricing period is 2/22/16 to 11/15/16. Producer must set basis using the New Crop 2016 basis before delivery of the corn or soybeans.
  • FC Stone charges a fee of 10 cents per bushel for corn, and 15 cents per bushel for beans, taken out of the final futures price given to the farmer. No upfront cost.
  • Sign up deadline is Wednesday, February 17, 2016.
  • Bi-weekly progress and pricing updates are provided by FC Stone. After you sign up, I will pass that information along to you.

I recommend trying this program on a small portion of your new crop. It will help you have some grain sold directly out of the field and give you insight to the strategies these experts are using, as well as give you a benchmark to try and beat. Any questions please ask me! If you are interested in this program give me a call in the next few weeks at 507-485-3183 or 507-829-1531 or stop in to see me.

 

Jory Bossuyt
Grain Merchandiser