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Business card contact info for grain marketing specialist kasey baker

As we approach the last days of summer and children head back to school, we get into the mindset of Fall Harvest. New Crop 2021 officially starts tomorrow, and the bids are reflecting that. Although I’m not quite ready for pumpkin spice everything, I am eager to see what this harvest will bring. The conversations most grain farmers are having with the dairy farmers currently revolves around chopping dates and tons to predict what their corn harvest is going to look like. What are your theories on the correlation? Let us know what you are seeing and hearing about predicted harvest dates and results. Here is what the traders are telling us.

From close last Friday 8/27, the corn futures are down almost 30c for fall delivery. The corn crop appears to look above average. There has been no change in the good-to-excellent rating for the prior week which is holding at 60%, almost in line with last year at 62%. Corn is progressing a little faster than last year at 91% dough, 59% dent, and 9% mature. We are still waiting to hear results from damages due to Hurricane Ida. The hopes were that the south was going to have early harvest corn to help bridge the gap from the 2020 to 2021 corn stocks.

We have also seen a drastic drop in the futures price of beans. The November board closed Friday at $13.33 and currently on Tuesday morning we are at $12.88. Beans are 56% good-to-excellent which is unchanged from last week but down 10% from 2020. Beans are also maturing faster than 2020, with 93% setting pods and 9% dropping leaves. China continues to make purchases for beans; however, bean exports are falling shorter than expected week-over-week.

As markets are changing, farmers should still be focusing on the profit that is still available for ’20, ’21, and ’22 crops. Talk with your Grain Marketing Specialist to see about making sales and the options we have that could work for all sizes of operations.

Have a great day!

Kasey Baker

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Business card contact info for grain sales leader Beth Helding

The transition from old crop to new crop is starting soon and the trade is reflecting a sooner than expected harvest. This week’s crop ratings reflected 41% corn dented vs. 22% last week and on the same pace as 41% last year. The US bean crop has 88% pods set compared to last week at 81% last year and ahead of the of 87% 5-year pace. Cash remains king and the local cash basis levels are reflecting immediate demand. The Sept/Dec corn spread has chopped around a bit recently and remains flat to start the week.

At the time of this writing, the grain markets are mixed with corn a .02-.03 higher and beans bull spreading with Sept beans up .08 and new crop Nov down .01. The bean spread is telling a big story on demand; however, we would recommend pricing out old crop beans sooner than later as commercials will be shifting over to new crop pricing and basis will be reflected off the new crop contracts soon with Sept. 1st right around the corner.

I wanted to take the opportunity to highlight our FOB program available to producers this fall. We know that everyone is feeling the staff shortage pinch this year, so if that’s you, please call your grain marketing specialist to arrange to have your grain picked up off the farm and hauled to an ALCIVIA location this fall – we are happy to help!

Beth Helding

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There are a few management practices that can be evaluated for use in maximizing your fertilizer investment as it relates to soil analysis and yield.

First, start by making sure you have current soil sample data which may include the need to sample as soon as the crop is off. Include micronutrient analysis for some of the fields you sample. Macronutrient availability and absorption can be enhanced in the presence of certain micronutrients. Consider sampling on a 2.5- or 1-acre grids to place nutrients where they will be most beneficial.

Adopt and utilize variable rate seeding and variable rate nitrogen and sulfur application to maximize efficiency and save money on seed and fertilizer. Raising pH to an optimal level will enhance nutrient uptake in your crop. Consider using fall-applied elemental S or gypsum to supply some sulfur in layers for the 2022 crop. Gypsum and elemental S prices have not gone up as other fertilizer materials have. Split applications of nitrogen and sulfur will improve efficiency of utilization. Consider growing hybrids that are efficient converters of nitrogen to yield.

If you are a livestock producer or have access to manure from a neighbor, test the manure and take credit for the nutrients supplied to the land. Inject or incorporate manure to preserve the nutrients you apply. Plant cover crops this fall that will supply nutrients that your 2022 crop can benefit from. Remember to take nitrogen credits as you rotate from soybeans or hay crops to corn this season. Contact your ALCIVIA Agronomist and Precision Specialist to set up variable rate liming, fall and spring fertilizer applications, or to help you better understand the tools available to you. Below is a chart that explains the availability of many micro and macronutrients as they relate to PH.

data graph describing the various elements in fertilizer and their PH levels

Summer fill of 28% UAN is available at a good price for those who have tanks available to store material over winter. Booking product with your ALCIVIA agronomy salesperson locks the price in when executed against price increases through the fall, winter, and spring. Prepaying expenses is your best opportunity to lock in the lowest price available at the time you do it. Make sure you book or prepay enough product to cover your needs for 2022. All indications including global market, domestic supply, as well as an attractive grain market look to support strength in the fertilizer market and the unlikelihood of significant reductions in pricing. Included below is a nutrient removal chart as it relates to yield.

nutrient removal chart in pounds per acre
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Join Bob Galdi and Terry Zimdars this week From the Field as they discuss moisture testing your silage corn before harvest, and using technology to test silage quality.

As always, make sure to contact your local agronomist with any questions you may have. Stay safe!

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Grain exchange manager Judy Uhlenhake

Tighter supplies add support to grain prices. The USDA report last week made significant changes to the commodity landscape. The report shocked the market with a much larger than expected drop in the national corn yield. USDA lowered yield expectations from trendline 179.5 bpa dropping the August estimate to 174.6 bpa. This lowers production, falling from 15.165 billion bushels to 14.75 billion bushels. Ending stocks fell from 1.432 billion bushels in July to 1.242 billion bushels.  

Soybean yield estimates were lowered from 50.8 bpa to 50 bpa. Production estimates came in at 4.439 billion bushels, 66 million bushels lower than July. Ending stocks reported 155 million bushels which is historically tight domestic stocks. Soybean condition declined in this week’s report implying a yield at 49,4 bpa. 

Wheat prices have gained momentum after the report revealed declining production in the U.S., Russia, Europe and Canada. All wheat yields were lowered by 1.3 bpa to yield 44.5 bpa. Ending stocks fell 38 million bushels to 627 million bushels. Higher wheat prices could mean more wheat acres planted at the expense of corn and beans.

We are excited to announce a new platform, Barchart, for getting our bids texted to you. During the conversion some people may have been missed getting added to the new platform. Please use the link below to sign up for daily bids for your location to continue getting the bids.

As we get closer to harvest, please reach out to your grain market specialist to help you make marketing and storage decisions. We are here for all your marketing needs.

Have a great day!

Keep the faith and stay safe!

Judy Uhlenhake

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PRESS RELEASE

Information Contact:
Ashley Schumacher, ALCIVIA
ashley.schumacher@landmark.coop; 608-819-3102

For Immediate Release: August 13, 2021

Community Support Drives Successful Partnership Between ALCIVIA Cenex and the Columbus School District

ALCIVIA is pleased to announce that the second round of the support program with the Columbus School District has successfully come to a close on June 30, resulting in a donation of $11,410 to the district.

In the fall of 2020, ALCIVIA launched a partnership with the Columbus School District in which the ALCIVIA Cenex would donate 5% of all sales generated inside the store and 5 cents per gallon of gas purchased when customers shopped using their rewards program card.

“We’re very appreciative of ALCIVIA’s continued support and partnership,” said Columbus School District Superintendent Annette Deuman. “CSD used the proceeds from the program to help fund our new playground equipment for our 4k through first grade children.”

ALCIVIA is grateful for the support from local patrons to make this partnership so successful. ALCIVIA hopes to expand the program to other school districts where they operate Cenex convenience stores. Tim Toraason, who oversees all of ALCIVIA’s Cenex convenience stores, said: “As a locally owned cooperative, ALCIVIA is proud to give back to the communities we serve. We’re very pleased with the success of the Columbus partnership, and look forward to expanding the program in the future.”

ALCIVIA is a leading, member-owned agricultural and energy cooperative driven by our passion for excellence and a future without boundaries. Located in Wisconsin and serving farm, business and retail customers in Wisconsin, Minnesota, Illinois, and Iowa, our engaged employees provide innovative, responsible solutions to help drive the immediate and long-term success of our customers, including competitive operating loans and input financing, as well as best-in-class products and services for the agronomy, animal nutrition, energy, and grain needs of our customers.

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PHOTO: Columbus School District Director of Business Services Nathan Knitt accepts an $11,410 donation check to assist funding new playground equipment for the Columbus 4k through first grade children. From left to right: Lee Parker, ALCIVIA VP of Energy, Nathan Knitt, Columbus School District Director of Business Services, and Joshua Grubb, ALCIVIA Columbus Convenience Store Manager.
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Business card contact info for associate grain merchandiser dylan beaver

This week Thursday 8/12 at 11:00 am the USDA will release The World Agricultural Supply and Demand Estimates (WASDE). Most have shifted focus to new crop as harvest has kicked off in the south. The state of Wisconsin has experienced rain showers in the last 48 hours which hopefully help finish out the corn and help start to fill bean pods. Boosting confidence in crop production and allow producers to sell great new crop values.

Figure 1 above is the December Corn CME futures board. When observing the last 2 weeks December corn has stayed in a constant pattern. If one was to draw a trendline on this chart it would appear almost flat. Seems as if the market is in need of a spark to make it hit that next trading range weather that’s higher or lower. Understanding that range of where the commodity has been trading and setting targets within those levels or just above should help lock in some new crop sales. Everyone has a different opinion on what levels or contract types they should be using, but minimizing risk is the key aspect.

In Figure 2 is an example of if you were to sell new crop cash corn at ALCIVIA’s Durand elevator today what your profit would be less your input costs. This is not true for all elevators as basis is different over ALCIVIA’s geography, but this is the truth when it comes to being able to sell $5.00 corn and what type of profit could come to an operation.

The 3rd Figure is the November Soybean CME futures board price. This market has shown more volatility over the last two weeks versus the corn market. In this figure alone there are serval peaks and valleys in just a month’s trading cycle. Drawing a trendline in this figure would be difficult for the last month, but for the last few weeks there has been a trend of a slight decline. This market with having more volatility and less carry than corn is one to continue to monitor and set target numbers to sell.

Figure 4 is an example of a chart if you were to sell new crop cash beans at the Fall River grain terminal today what type of profit an operation would have on an acre depending on yield and input costs. Understanding that this changes per location in our cooperative footprint, but there is opportunity in all markets. 

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Check out the latest ALCIVIA cooperative news to stay informed on all the happenings throughout the cooperative.

ALCIVIA Advisor – August 2021

ALCIVIA Advisor monthly agricultural newsletter
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Join Justin Travis From the Field this week, who discusses field scouting for weed pressure and how it can impact your buying decisions for the 2022 crop year.

As always, make sure to contact your local agronomist with any questions you may have. Stay safe!

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Business card contact info for grain marketing specialist Melisa Schmidt

Happy August! Markets are waiting for the supply/demand report next Thursday, August 12th at 11 am. There could be some fireworks, as the USDA will release projected yields on corn and beans. Markets are waiting to see if there is any indication of lagging demand.

Crop ratings on corn dropped 2% to 62% good-to-excellent. Overnight market on corn was down but as of writing this, corn is up. On an interesting note, we started the corn ratings at 76% good-to-excellent.  The rating has dropped six out of the nine weeks. The five-year rating is 67%. Another note, the crop rating is tracking similar to 2017, which wound up with record nationwide bushels per acre at 176.6. StoneX will release their crop estimate today. Brazil cut their second corn crop again from 60.5 to 59.6 million metric tons (MMT). Total production will be the lowest since 2017/2018 at 87.1 MMT.  

The soybean crop rating went up 2% to 60% good-to-excellent. Our five-year average is 65% vs. last year at 73%. Soybeans are under the pressure today with crop rating improving and some indications of lagging demand. Crush numbers for June came out yesterday with lower-than-expected numbers of 161.7 million bushels (mbu) down from last year at 177.3 mbu at the same time.  May crush numbers were 173.5 mbu. 

With the markets moving so quickly, make sure to have working offers out there. Look at numbers past Fall 2021 and have the conversation with us about opportunities to lock in some profit. Also, if you have working offers, make sure to review them each month.

ALL. TOGETHER. AWESOME.

Melisa Schmidt