Monday, April 8, 2013

Afternoon Grain Market Commentary for 4/8/2013

Afternoon Comments 4/8/2013

Monday, April 8, 2013, 3:16 pm
Submitted by: Kyle Lehman

Corn closed mixed with nearby corn closing 4 ½ cents higher while new crop corn closed 3 cents lower. Nearby corn was pushed higher as traders start to liquidate shorts prior to Wednesday’s USDA report combined with the lack of any hedge pressure. New crop corn closed lower on weather patterns indicating spring outlook to be above normal precip alleviating some of the drought concern. Estimates for Wednesday’s S&D are projecting corn carryout to increase to roughly 900 mln bu.

Soybeans also found some support from short covering prior to Wednesday’s report. Weekly export sales came in at 15.2 mln bu with China accounting for more than half of that total. At this point the US only needs to export 5.8 mln per week to meet USDA projections.

A large storm is supposed to hit the Delta stretching to the Eastern US this Thursday. Projections show the corn belt could receive up to 2” of rain (map below) followed by some cold temperatures.

*New Crop Corn Survey from Farm Journal Pulse:
2013 Corn Production sold or priced
None: 53%
1-25%: 24%
26-50%: 11%
51-75%: 4%
76-99%: 3%
100%: 4%


Monday Morning's "From the Field" Video Update


Farmers Cooperative Company weekly "Monday Morning From the Field" with Todd Claussen.

A.M. Grain Market Commentary for 4/8/2013

AM Comments 04/08/13

Monday, April 8, 2013, 7:52 am
Submitted by: Dustin Weiner

Good morning!

Our markets are higher this morning, led by soybeans.  Overnight the Chinese soybean futures were even/flat – this comes as a bit of a surprise as most traders assumed those futures would trade lower after China got back from their holiday (due to bird flu).  So… maybe this bird flu isn’t as big of a deal as we thought last week? Either way, today the soybeans are bouncing back nicely.

As you know, the markets are trading new hours… the electronic session is currently “paused” as I type this.  It now stops trading at 7:45am M-F to regroup from the overnight session, with both the pit and the electronic turning back on 8:30am (and both turn off to settle up the day at 1:15pm). 

Opening Calls (for the 8:30am open):
Corn is called 3 to 4 cents higher
Soybeans are called 8 to 12 cents higher

5-Day Precip Outlook

Farmers Cooperative Co. and Hoegemeyer Hybrids Announce Strategic Alliance


Farmers Cooperative to Sell Hoegemeyer’s Broad Portfolio of Genetics


AMES, IA, and HOOPER, NE, April 8, 2013 – Farmers Cooperative Company (FC) and Hoegemeyer Hybrids announced today they have formed a strategic alliance enabling FC to be an exclusive dealer of Hoegemeyer and HPT® brand seed in 37 counties of Iowa.

“We’re proud to work with an amazing organization to provide our farmer-owners access to another of the largest pools of germplasm in the world,” says Gary Peter, FC Vice President of Agronomy Sales and Marketing. “With our DeKalb/Asgrow brand, we have access to the immense pool of Monsanto genetics. This collaboration rounds out our lineup and provides our growers the advantages of the DuPont Pioneer innovations in Hoegemeyer and HPT brand genetics.”

FC and Hoegemeyer share like-minded core values and a rich history of serving farmers in terms of their individual needs, which continues to be a focus, even in today’s global marketplace.

“The Hoegemeyer brand and products have been recognized for over 75 years for quality and consistency.  Our diverse genetic line up will bring strong yield performance and will protect against challenges growing in importance in Iowa, like Goss’s Wilt.  We are excited to be able to work with a tremendous company like FC,” says Stephan Becerra, Hoegemeyer General Manager.

FC is the largest cooperative in Iowa, serving a trade territory of over 3,000,000 acres. This agreement will enable FC to be the exclusive retailer of Hoegemeyer seed within that territory, allowing growers to have genetic and trait access they can’t find elsewhere.

“We believe that sets us apart in the industry in terms of what we can offer a grower,” says Todd Claussen, FC Director of Agronomy Technical Services. “We will be bringing a unique bag of seed to the growers in our footprint. The genetics will be hand-selected to match the needs of the farmers we serve. That’s a huge advantage for our customers. They are basically able to have their bag of seed genetically formulated to match the acres on their farm.”

As a cooperative, FC’s philosophy is to utilize the combined resources of their members and bring value back to the farmers who own the company. This relationship allows FC to provide its members something no other retailers in this area are able to offer.

“The power of the DeKalb/Asgrow brand, combined with all that Hoegemeyer brings to the mix creates a lineup that will bring unmatched genetics and innovation together.  We value the new alliance because it dovetails with our flagship brand to offer something completely unique to the marketplace,” said Peter. “We believe Hoegemeyer, backed by DuPont Pioneer genetics, has both the pedigree and the performance to be on the FC roster. We’re planning on some big wins for our growers.”

Founded in 1937, Hoegemeyer Hybrids serves farmers with seed products specifically chosen for exceptional performance in the Western Corn Belt.  For more information on the complete line of Hoegemeyer products, please visit www.therightseed.com.

FC is the largest farmer-owned agriculture cooperative in Iowa, founded in 1881 on the premise that if a group of people with similar goals get together, they can achieve more than any one of them could on their own. Today, FC serves over 5,300 active members throughout a trade territory of over 3,000,000 acres. Members are served from over 50 locations by more than 450 full time employees. For more information, visit http://www.fccoop.com.

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® HPT is a registered trademark of Pioneer. HPT® brand seed is distributed by Hoegemeyer Hybrids.

Friday, April 5, 2013

Afternoon Grain Market Commentary for 4/5/2013

Afternoon Comments 4/5/2013

Friday, April 5, 2013, 3:08 pm
Submitted by: Kyle Lehman


Both corn and soybeans closed lower today making it the 5th out of the last 6 trading days with lower closes. Corn did manage to hold yesterday’s low for nearby corn futures which may suggest the market is trying to form a bottom. Trade has been focused on trying to figure out what the ending stocks will be for Wednesday’s USDA S&D after last week’s stocks number threw people for a loop. The current average estimate is an increase of 204 mln bu. bringing the ending stocks up to 836 mln.

Soybeans were drug down on reduced demand from China after the new strain of bird flu has been reportedly responsible for 6 deaths causing the gov’t to kill 20k birds. The question remains: How much has/will this bird flu strain reduce demand? Chinese markets open back up on Monday which should give us a better grasp on the situation and long effects. For the time being expect the focus to remain on China and the bird flu as opposed to South America logistic problems.

Outside markets were bearish with crude oil trading nearly $5/barrel off the recent highs. Equities traded lower on the release of another poor jobs report that added 88K jobs for the month of March. Despite the poor job creation figure unemployment dropped to 7.6% indicating more people have stopped looking for employment. The 5 day forecast is calling for a good amounts of precipitation for the Delta and Western Corn Belt followed by a drier period that should allow planting to get started.

*Reminder new trading hours take effect Sunday night. Markets will pause in the morning from 7:45 to 8:30 am and have a new close of 1:15 pm. Night sessions will now open at 7 pm (graph below).

A.M. Grain Market Commentary for 4/5/2013

AM Comments 04/05/13

Friday, April 5, 2013, 8:37 am
Submitted by: Dustin Weiner

Good morning!

Our markets are mixed this morning with corn trading a bit higher while soybeans are weaker.  Soybeans continue to slide on fears of reduced Chinese demand.  Chinese authorities have reportedly killed more than 20,000 birds from a live poultry market in Shanghai after it was found in pigeons for sale there.  Both the soybean and soybean meal markets are on shaky ground because of this.
 
Weather… a warming trend is in the forecast for the corn belt with rain chances in the front end while the extended forecast looks drier.  The 8-15 day forecasts is indicating that planting should progress nicely through the last half of the month.

The outside markets are a mixed to bearish input this morning.  Equities are under pressure and crude oil is weaker.  May crude oil futures are down over $4.50/barrel on the week.  The daily chart of May crude looks rough – after starting the week trading above all of their moving averages, crude is now trading below those same moving averages.  Quite a drop.

Currently
Corn is 3 to 4 cents higher
Soybeans are 8 to 12 cents lower

Thursday, April 4, 2013

To the Oathouts, ‘Chasing the Dream’ means chasing higher yields

Farmers Cooperative Company customers Kurt and Rhonda Oathout recently received national recognition in the Asgrow Yield Chasers Contest for growing the highest yielding soybeans of all maturities in 7 out of the 10 Corn Belt States -  including Iowa, Illinois and Indiana. As if that wasn’t impressive enough, the soybean yield of 89.77 bushels per acre stood alone as the highest in the nation in the 2.6 to 3.1 maturity.

“In the business of farming, our ‘factories’ exist outdoors. Our number one resource is our top soil. I’ve always tried to manage my business by focusing on the soil,” Kurt says. “Along with my neighbors, I’m fortunate enough to be farming some of the richest soil in the world right here in Iowa. I take my role as a steward of that ground very seriously.”

Kurt and his wife, Rhonda, farm in Greene County, Iowa, Northeast of Jefferson. “We raise corn, soybeans and kids,” Kurt jokes. “Rhonda has always been involved in the farming operation. She actually plants the soybeans at the same time I plant the corn. I figure if it’s a good day to plant corn, it’s a good day to plant soybeans as well.”

Kurt is a fifth generation family farmer who recognizes the importance of women in Agriculture. “When I introduced my wife at the national Commodity Classic awards ceremony in Florida and noted the fact that she had planted all the soybeans, the whole crowd broke out in applause. We can’t underestimate the role of the family in this business of feeding the world,” Kurt adds.

Kurt also credits his neighbors and his FC Agronomy team for their roles. 

“Rhonda and I are surrounded by good farmers who know how to grow crops while protecting the soil and water quality which are the foundation of what we do. I’ve learned a lot from them. I actually heard from another farmer that they really trusted Brian Berns at FC, and that he’s really been a big part of their success on the farm. I called Brian up and quizzed him some. I felt like I could trust him,” Kurt said. “That was five years ago. We’ve been working together ever since.”  

Kurt feels that as a cooperative, FC has the philosophy that what is good for the farmer is good for FC. “FC is your partner,” Kurt says. “ In order for them to be successful, the farmer needs to be successful. The FC Agronomy team has contributed greatly to the success of our operation. They’ve been there with solutions to some of our biggest challenges and partnered with us in decision making at every level. They help us sort through new products and technologies and figure out what works on our farm and even on specific acres. They help us deal with the unique hands the environment deals us each year in terms of weather, pests, and conditions. Like I said; I can trust them,” Kurt adds.

FC’s Brian Berns talked a little about what it took for the Oathouts to produce yields that would win at the national level. “Last year was exciting because Kurt won the soybean yield contest at the District level for the mid maturity group 2 beans. So the challenge became, how do we top that for next year,” Berns recalls.

“As Kurt said, everything begins with the soil. We started looking at each field and developing a fertility program. Then we got together and started talking about soybean varieties and trying to match the right soybean to the right acre and soil types,” said Berns. 

“The next thing that really worked in our favor was planting. Kurt is in a unique position that he has Rhonda to plant the soybeans. With the dry, abnormally warm, early spring, they were able to get out there and plant the field in late April. We chose the variety Asgrow 2931 and treated it with Acceleron fungicide, insecticide, and an inoculant to help get the beans off to the best early start.   We think this combination of seed treatments combined with the early planting date is the right thing to do to maximize bean yields. Little did we know it was going to be an even bigger deal with the growing season we were about to have. 

"Things were looking good, we got a good emergence. We used an early preemergent herbicide combined with a timely post emergent pass that included a fungicide and foliar feed product to give us yield maximizing weed control and a healthy soybean plant. We had some spider mites start to colonize the field in mid-July so we did an insecticide, another fungicide, and another foliar feed application at that time to protect the field to harvest. It got down to harvest, and again, timing was everything,” said Berns.

According to Berns, Kurt “nailed it” when it came to timing. “The day we went out to do the yield check, we caught the beans at 13.1% moisture. In most cases last fall that soybean moisture didn’t last more than a few hours. Beans wanted to go from too wet to too dry in 24 hours,” he said. “I had the opportunity to jump in the combine with Kurt while FC’s David Hoskins was out measuring the 1.5 acre contiguous area for the contest,” Berns continued. 

“These combines today are pretty amazing as far as what they can eat for beans; but I’m here to tell you, that combine was begging for mercy with these beans. They were fantastic! I mean, in 18 years in the business, I’ve never seen soybeans like this. It was fun just to watch the yield monitor bump up. We couldn’t believe it when we had it on the weigh wagon – it felt like we were doing a corn check.”

After sharing the story, both Kurt and FC’s Brian Berns agree that once you see these kinds of yields, it becomes an even bigger challenge to top them in the future.
“We’re up to the challenge,” says Berns, nodding. He looks at Oathout.

And the chase is on.