Grain Gleanings

 

 

Grain Volatility

By Jake Moret, Grain Originator

Overall, I think we can be happy with what we have in for crops and I’m hopeful that the few unplanted corn acres will be able to get taken care of before May 31. Also, best of luck to the guys trying to get hay put up over the next few days! Before summer gets away from us, please reach out and get a plan together for getting those old crop bushels priced or protected. I wouldn’t be afraid to reward the recent upside in the soybean market with a new crop sale. 10% sold wouldn’t be a bad place to start.

As old crop soybean stocks decline throughout the summer, the health and stand of the new crop becomes of increasing more important. Weather conditions, such as temperature and rainfall, can greatly impact crop development and yields. Unexpected weather including drought, flooding or extreme heat during the summer can significantly affect the supply of soybeans, leading to increased volatility in prices.

Corn and Soybean volatility seasonally peaks around the 4th of July. That peak in volatility coincides with the release of the USDA Acreage report June 28th, which is normally the most impactful report and is the estimate of planted acres by the US farmer.  Other report days coming up are the USDA reports on June 12th and July 12th. These are generally good times to have offers working as things can get a little hectic.

5/24/2024

 

 

Planting Progress

By Matt Morog, Grain Department Manager

Planting progress for the US corn crop on Monday was at 36% on corn vs an average pace of 39% planted. SD is one of the states struggling. Around the Sioux Falls area progress is about average with some areas nearly done and others trying to catch up. Parts of SD though are running dangerously behind with the wet weather we have had. Overall, most of the state will get planted with only isolated areas getting hit hard with prevent plant. Corn futures have been rallying as of late with the delay in planting, but I suspect values could fall a little with a good week of progress on the upcoming report.

Soybean planting is running behind the typical average as well, but I think with the extra time we’ll get most of all the beans planted in the US. Soybean futures have been rallying primarily on the flooding that is affecting parts of Brazil and pushing their values higher.

Overall, I think the market is poised to give back some of the recent gains we have seen once US planting catches up. This is truly one of the spring planting carrots I think we are witnessing. It’s a good spot to make catch up sales on old crop and dip your toe in the water for new crop. Basis values on old crop corn and beans feel weaker with every day as more and more grain moves from on farm storage to the processors.

Don’t hesitate to give us a call if you are looking to make an offer on old or new crop grain.

5/17/2024

 

 

Market Information

By Jeff Moritz, Lead Grain Merchandiser

Happy May Day or at least at the time of this writing. The Holiday has its origins in ancient European Times marking the beginning of Summer. Believe it or not, traditions and celebrations in earlier times had ties to agriculture. Romans engaged in celebrations during which a bundle of wheat was carried into a shrine whereby a devotion was likely made to Ceres, the Goddess of Grain. Later the Gaels celebrated the holiday mainly focused on the symbolic use of fire to bless cattle and other livestock as they were moved to summer pastures. I know what you are thinking, come for the market information, stay for the ancient holiday traditions.

If I have not lost you yet, this week our trade area received some meaningful precipitation. It was much needed in the grand scheme, however if we were to miss out on the next couple of systems that are forecasted for next week, I do not think would hurt too many of our feelings at this point. On Monday afternoon US planting progress was reported to be 27% complete on Corn and 18% complete on Soybeans, which is well ahead of the 5-year average for both crops as well as a year ago. Not many wheels are expected to turn this week with the wet weather and potential rain systems on tap. However, it is still a bit too early to be concerned about preventive planting just yet or to provide support to the market. If progress is not 50-60% complete by May 15, then the market will have a story to trade.

On Tuesday, the US Treasury and EPA published guidance with the updated GREET (Greenhouse Gases, Regulated Emissions and Energy Use in Transportation) Model for producers of SAF (Sustainable Aviation Fuel) to receive the 40BSAF tax credit for producing ethanol and/or soy oil from feedstocks in which Climate Smart Agriculture Practices (CSA) are utilized. However, the Government agencies delayed the announcement of the 45Z tax credit requirements. At this point it is indefinite when that guidance could be released, but implementation is expected in early 2025. The Clean Fuel Production 45Z tax credit encourages farmers to produce corn using all three practices of No Till, Cover Crops (which in this part of the country is common practice for many operations) as well as Enhanced Efficiency Fertilizers. At this point, it is unclear what hoops will need to be jumped through to achieve the required CAS certification. Once the red tape is sorted out it seems like this could be positive for Corn and Soybean markets longer term.

In the short-term soybeans were down sharply midweek from the lifting of the strike by Argentina’s Oilseed Workers Union. However, it appears they will likely again strike when the Senate takes up the legislation on labor reforms. Not long term bullish as they have supply of beans, meal, and soy oil. Supply always finds a way to where it is needed. Next meaningful headline and price maker for the row crops will be the May WASDE report next Friday, May 10th. The market will get its initial look at 2024/25 Corn and Soybean balance sheets.

While we wait for fields to get fit again, do not hesitate to give your local CFC originator a call to discuss your marketing plans for old and new crop and to place offers. Once we get rolling again it’s easy to put marketing on the back burner during the time of year that usually provides the most pricing opportunities. Please stay safe and have a successful remaining spring season.

5/3/2024

 

 

 

 

Central Farmers has a mobile app that provides real time business information at your hands. By partnering with BUSHEL, we are able to empower you, our producers, to make informed and quicker business decisions with CFC.

  • Access scale tickets, contracts, bushel balances, cash bids and market information— all from your smartphone.
  • Access scale tickets virtually in real time, allowing you to know how many bushels you have delivered and how much still needs to be delivered. The Scale Ticket interface is easy to understand and tracks grade factors such as Moisture and Test Weight.
  • Access your contracts that you have with any CFC location. You will be able to see the status of any contract to find out whether it is filled or is still open.
  • Access real-time bushel balances of your grain across all CFC locations.
  • Access delayed cash bids for all of our CFC locations. You will be able to access Grains, Livestock and Ethanol Futures from CME or MGEX.

You can find the App on Google Play for Android devices or the App Store for iPhones by searching for Central Farmers. Download it today!

 
Click here for the ADM Advantage website
 
Click here for the ADM Crop Insurance Information
 
 
Ask us how you can help keep U.S. ag exports competitive.

FREMAR LLC strongly recommends farmers verify their seed varieties are approved for significant export markets.
We plan to selectively test loads delivered to our grain handling facilities.
We reserve the right to reject crops with unapproved traits.
If you have seed that is not approved for significant export markets, we encourage you to check with your seed sales representative to see if your order can be exchanged for seed that is approved for global use.
 
 
FREMAR LLC will NOT accept any treated soybeans at any of our facilities in grain deliveries.
It is ILLEGAL to dump treated beans at ANY grain facility!
 
 
Due to a recent South Dakota court ruling, all Voluntary Credit Sale contracts (DP, Deferred Pay, Basis), the South Dakota Public Utilities Commission Warehouse Division has notified FREMAR LLC and Central Farmers Cooperative that all Voluntary Credit Sales Contracts must be signed within 30 days of final delivery.
 
 
If FREMAR LLC or Central Farmers does not receive the signed contract at our elevator within 30 days,
the bushels on these contracts must be cashed out at the closing price on that date
and the check will be mailed to the producer.
  
Please click here for the official South Dakota Public Utilities Commission Warehouse Division Ruling 

 
 
 
The CBOT trading hours are:
Sunday - Thursday night hours are 7:00pm - 7:45am. 
Monday - Friday day hours are 8:30am - 1:15pm.

Central Farmers Cooperative continues to purchase grain for all locations while the CBOT is open and closed.
The extended hours continue to put more volatility into the market.  We encourage our customers to continue to utilize our offer system.  Your offers have the potential to be filled at any time while the market is open.
Please call your local Central Farmers Cooperative location to place your offers as well as any questions you may have.
Thanks as always for your patronage.
 

 



Origination Staff

Matt Morog
Grain Department Manager
605-871-3809
Jeff Moritz
Lead Grain Merchandiser
605-661-1106
Jake Moret
Grain Originator
605-941-8141
 
Hunter Behrens
Lyons Grain Originator
605-543-5400
 
  
Christopher Owen
Dimock Location
605-928-3393
 
Terry Kampshoff
Canova Location Manager
605-661-7724
Mike Sayler
Freeman Location Manager
605-360-7880
  
Rebecca Johnson
Salem Elevator Location Manager
605-425-2280