To say grain markets are volatile right now would be an understatement. Let’s start with corn. In the May WASDE report, we got our first look at the 2021/2022 balance sheet. This first look at the carry out for next year came in a 1.5 billion bushels, 250 million bushels than the current carry out for this fall. This was accomplished by using a trend line yield of 179.5 bushels per acre. Since that report corn futures have lost nearly $0.60 in both old crop and new crop. From a basis perspective, there have been wild moves there as well. Demand for ethanol continues to pick up pace as more driving picks up across the country. On the other hand, river and export facilities have seen their demand slip some as lower priced South American supplies start to fill the global market. Despite the 1.2 billion bushel estimated carry out projected for this fall, the market feels tight, meaning there is potential for the market to recover a portion of the recent losses.
On the soybean balance sheet, very little has changed: soybeans are in very short supply. Just a few weeks ago many domestic soybean users were very concerned with supply for this summer which was reflected in the strongly positive basis values paid throughout the area. However, as the futures market put in new highs in early May, producers rewarded the rally and sold more beans than expected. This resulted in a precipitous drop in basis values as crushers became more comfortable with ownership and have opted to slow their purchases.
In spite of the dramatic loses in futures prices recently, it is worthwhile to remember there is still opportunity to protect a profit in this years crop. There is still time. While it is late May, there is a lot of weather to get through before the crop is in the bin. Bullish markets like we have been experiencing recently often give us more than one chance to participate. There are plenty of tools available to help protect these profitable prices, in many cases for more than one crop year. Contracts such as the CHI Foundation contract can protect a floor price while also participating in upside market movement. Other available compass contracts can allow bushels to be priced at a premium to the current market, provided the market stays above a predetermined trigger value. For more information on any of the available contracts CHS has to offer, and how we can help protect these attractive prices, reach out to your local grain originator. We are here to help you.
Spring season was as fast as it ever has been for us all this year. With little rain and good ground conditions most of the crop went in without much for issues at all! We have seen some replant around the area and a fair amount of crusting issues caused by some driving rain and hail in some places.
As we turn the page to post spraying it is going to be more important than ever to make sure you have a robust herbicide program in place. While there are many perks to an early planting including better yields typically; the down side is a longer window that we need to control weeds. We also need to be aware that in many cases our pre herbicides have already been out for 4+ weeks with little moisture to properly activate them. This means we will likely see ragweed and waterhemp start rearing their ugly heads soon if they haven’t already. This rain we are getting will likely give us a bit of “reachback” activity on small weeds but it will not be 100% at all.
As you are finalizing post emerge herbicide programs consider thinking about a layered residual or a sequential pass plan if you have not already. Another thing to think about is checking your adjuvant program. The efficacy of herbicides is heavily dependent on the adjuvant package in the sprayer tank. Consider adding in a product such as Level Best to assist in water conditioning and to speed up the kill on tough weeds and grasses. We have seen significant benefits from the addition of this product in the tank. Read this article on adjuvants from our LIFT academy. Be sure to consult your agronomist about your herbicide plan to make sure it is still the right plan for the weeds in your fields.
Thank you for your continued support and business!
CHS is excited to Welcome three agronomy sales interns for the summer. Read more about each intern below.
Meet Barrent Herman, from Osseo, MN. He is currently attending UW River Falls. In college he is a part of the DTS Fraternity, intramural softball, and crops & soils club. His favorite class is plant science. He was also a NRCS soil conservationist trainee and has been an agronomy intern for other cooperatives. His ultimate career goal is to become a sales agronomist or crop consultant. He is looking forward to learning all the ins & outs of a sales agronomist position. Barrent will be working from our Grand Meadow location.
Meet Jessie Schwartz, from LeSuer, MN. She is an Agribusiness student at North Dakota State University. She grew up on a hog & crop farm. Her favorite class in college so far was her cooperative’s class. She is involved in agribusiness club, accounting club and NDSU Saddle & Sirloin. She has previously interned at Compeer Financial crop insurance and U of M Extension Brown County 4-H Intern. She hopes to use this internship as an opportunity to explore different options at CHS. Jessie will be working from our Claremont location.
Meet Kaylee Wendt, from Eyota, MN. She is currently attending UW River Falls and studying Ag Business. She also grew up on a crop farm. In college she is involved with showing horses on the UWRF IHSA Western show team and on the POAC breed circuit. Her favorite classes have been Ag Markets & Prices and Ag Policy. Some day she hopes to be working full-time within sales at an agribusiness. This summer she would like to gain sales experience and get insight of an agronomist day-to-day work schedule. Kaylee will be working at our St. Charles location.
As you meet our interns please welcome them to the CHS family.