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Welcome back to ALCIVIA Roundtable, a series covering logistics, market access, and market fundamentals, with the end goal of helping our members make informed decisions for their operations. This week, merchandiser Dylan Beaver explains the difference between an inverse market and a carry market, and what we are in today.

Next week, Aly Pascuzzi will explain bearish and bullish markets. Thanks for joining this week’s episode of ALCIVIA Roundtable!

ALCIVIA Roundtable – Inverted vs. Carry Markets

Hello, Dylan Beaver grain merchandiser here at ALCIVIA this week on ALCIVIA Roundtable we are going to discuss carry market and inverse markets. On the screen you’ll find the CME website and the price of corn for futures months of May forward. In this graph we’re going to talk about difference between some of these last trades. Specifically, we’re going to talk about the term inverse market and what does that mean, why is it important to our producers. As you can see here, we have the May contract for corn of 2023 and then we have the July contract of 2023 and the September contract of 2023. Those are considered old crop marketing months and, in those months, as we progress forward into the year the price becomes less and that’s what we call an inverse market. Where corn today is worth more than it is in the future so with that being said in the current marketing year of 2023 for old crop grains we are in an inverse market where today corn will be worth $6.47 at the Chicago Board of Trade and by the end of the year or the end of this this crop it will converge to be $5.50. So, we do have an opportunity to sell above six-dollar corn as of today and as we progress into the future those days will start to limit as we move to the new crop year.


Below you can see the crop year for new crop grains December of 2023 to March 2024 and then into May 2024. This is what we call a carry market, this is where the market is structured for grains to be worth more later in the defers than they are in the nearby. So, you can see that corn for new crop is worth $5.46 and as we progress throughout the year it gains 10 cents into the next marketing month of March at $5.56 and then it covers us to $5.62 being worth six cents more later. So, the difference between these two markets is understanding when to sell your grains and when is it most important to move it. In this market it’s saying sell it now and move it before we get to the point of where it’s worth less into the new crop markets. December forward store your bushels if you can store them and sell them later. Now the things to remember is cost of carry is not free, so putting your grains in your grain bins at home has a cost to it.


What you put your value onto that cost is what determines how much money you think you need to have to carry those grains. So those are the two differences between an inverse and a carry market you can see that for old crop marketing cycle or currently in the inverse market and for new crop we’ll be in a carry Market to star. We do have the opportunities to change these markets or turn around if the world demand does change these structures of these markets can always flip back and forth as fast as the inverse can go out it can come back to kind of carry as well but always do remember that when you’re in these types of markets market structures space that risk is always something to be paying attention to so with that please take the time to look at the market structures that we’re currently in and how those terms reflect on onto the current structures and then how does that relate to what’s happening in your local markets of demand as well. Because this is this is a national scale when we’re looking at this so it’s very important to bring that back to your local markets as well and then relate that to your cash market, there’s a lot of moving puzzle pieces here to this structure and it’s important that you understand what your value of your grade is in the world economics space versus just looking at what’s happening regionally.


Thanks for joining us on this week’s episode of ALCIVIA round table join ALCIVIA round table next week to discuss the terms bearish and bullish.

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Introducing ALCIVIA Roundtable, a series covering logistics, market access, and market fundamentals, with the end goal of helping our members make informed decisions for their operations. This week, merchandisers Aly Pascuzzi and Dylan Beaver discuss the role that merchandising plays for ALCIVIA and its members.

Next week, we will discuss inverse and carry markets. Thanks for joining this week’s episode of ALCIVIA Roundtable!

Welcome to ALCIVIA Round Table, I’m Ali Pascuzzi the feed merchandiser here at ALCIVIA, and I’m Dylan Beaver grain merchandiser here at ALCIVA.

As a grain merchandiser I’m responsible for finding different markets for our producers and giving them the best opportunities to market their grain, whether that’s running a truck deck that we have here at ALCIVIA, or trading grain out of our shuttle loaders or short line loaders. Whether that market is on the up-rail line or the CP rail line or on the wsr short line.

As feed merchandiser here at ALCIVIA I work on preparing bulk products for our feed mills and then also working on our direct ship program for our bulk ingredients to our Farmers. We’re bringing value to more than just the co-op itself, it connects back to the members and it also it connects back to our suppliers and our end users of our product.

The value that the merchandising team brings ALCIVIA is finding the best opportunity for our producers as well as the co-op. On top of that we are protecting risk for our producers’ operations and the cooperative.

In this series expect to hear more about logistics, market access, and market fundamentals. Join me next week where we’ll talk about inverted and carry markets.

Thanks all see you next week!

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Frost seeding is coming and Shed Hunting season is in progress. Where feeding is allowed it’s good to have the Stockpile blocks and some Bad Habit Attractant out make sure to check all regulations in the area you are in.

What: When frost seeding you need to be careful on “WHAT” you are planting and our recommendation is to only frost seed cold season perennials like Clover and Chicory, a good Domain mix for frost seeding are Comeback Kid and Hot Chic. The specific varieties of White and Red Clover, Chicory and Alfalfa have been chosen for their hardiness, longevity, soil tolerance, protein levels and attractiveness to deer and will provide a foundational food source on your property for many years to come.

WHEN: The best time to frost seed your cold season perennials is late Winter or Early Spring when the weather pattern calls for a period of freeze-thaw-freeze-thaw temperatures. Where it freezes at night and thaws during the day. This will cause the ground to expand and contract and help naturally “pull” the seeds into the soil, where they will wait for favorable air and soil temperatures to germinate.

WHY: Frost seeding offers a great way to establish an early Spring stand of high protein perennials that will green up before Mother Nature provides any other vegetation without disturbing the soil through disking or tilling. Since no tilling is being done to unearth weed seeds, it also helps the slower growing perennials to establish with little competition from weeds. Lastly, it is a great way to plant tiny perennial clover seeds without the risk of burying.

WHERE: First, you will need an area that is “ready for seed”.  This can be a pre-existing clover or chicory plot you are looking to thicken up, an area that was prepped last fall and is void of weeds, competition or debris or last year’s brassica plot that has been over grazed by deer, exposing the soil for good seed to soil contact.  You cannot just broadcast seed into an overgrown area of your property and expect it to be successful, so be careful when selecting your location to make sure it fits the desired application.

HOW: This is the easiest part, as you simply broadcast the seed on the frozen soil or last remaining remnants of snow on the plot. Typically, when frost seeding, I will use 1.5 to 2 times the seed rate to ensure enough seeds achieve appropriate soil contact, as there is the likelihood during the frost seeding process some seeds will be deterred by dead plants or debris, never having the chance to germinate. Once the entire plot has been seeded, it’s time to let Mother Nature do her thing!

Frost Seeding can be an excellent and inexpensive way to establish year-round food on your property without using heavy equipment to do so, just make sure the area is ready for seed and the appropriate type of seeds are selected.  Once you have the perfect spot and food plot mix picked out, just wait for the Spring thaw to begin, and give it a try!

Happy Planting this spring!!!

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It seems like the “help wanted” sign is out everywhere these days – but that doesn’t always include opportunities in the rural communities. Monica Brantner is the Human Resource Manager at ALCIVIA, and she’s got plenty of unique job opportunities available across the state. Brantner reminds job seekers that aside from great benefits, there’s also an element of commitment to community involvement that can’t be overlooked. Whether it’s delivering fuel, handling invoices, or being the friendly face at one of their convenience store locations – take a look at all the opportunities available with ALCIVIA.

Summer is here and so is the heat, for pets and livestock overheating can cause major discomfort and can even be deadly, so take good care of your animals physical and mental well-being with waterers, barn fans, fresh shavings, and more from Blaine’s farm and fleet.

Time again for our ALCIVIA co-op talk, an opportunity for you to learn more about this agribusiness that’s serving the state of Wisconsin and I’ll tell you what everybody’s been hearing it I know that you have for sure. There are all kinds of opportunities in agriculture today and that’s where we want to train our eye today visiting about the different opportunities within ALCIVIA.

No better person to try to give us the depth and scope of opportunities than Monica Brantner, she is the human resources manager for ALCIVIA co-op and our guest today for co-op talk. You know that’s the thing, Monica is trying to get people to pay attention to these great job opportunities that’s got to be one of your greatest challenges these days.

Yes, yes, it is, thank you for having me today, we have many great positions open right now, talking to a lot of great candidates and finding the right fit for them. There’s many opportunities anywhere from retail management to operations. We always have an opening for anyone with a cdl.

Right, yeah that’s one of the value areas for sure that’s so important to any Agri-business. Talk to us a little bit more about the benefits of working with a company the size and scope of ALCIVIA. We have to remember ALCIVIA literally has a statewide footprint so regardless of where you’re hearing our voice there’s opportunities. What are some of the benefits that really seem to perk up and catch people’s attention?

Yeah, we have a lot of great benefits that we offer to employees one of them that stands out that I’d like to just touch on is the volunteer time that we offer to our full-time employees. We offer 16 hours of volunteer time per year for them to take that time to you know reach out uh to something that is not for profit. We participate with Second Harvest we also participate with drive to feed kids and we love to give our employees the opportunity to take the time away from work and participate with those things so that’s just one of the great benefits that we offer.

You know the other thing I like about what ALCIVIA is thinking about is you focus on your employees not just today but down the road tuition training opportunities, certifications you’ve got their back when it comes to thinking forward on their career.

Yes, yes we do. We do like to help develop our employees and find the right fit for them, help them you know give them that opportunity by offering tuition reimbursement so yes many employees do take advantage of that.

You know the other thing that I’m curious to remind people about although ALCIVIA co-op is a big server to the agri-business community there’s a lot of consumer related jobs within ALCIVIA and if you’re one of those looking more for a nine to five as opposed to being out in the elements you have really like you said a job board that will address all that.

Yes, we do, we have many positions that you know someone could find the right fit for right in our corporate headquarters in cottage grove there’s also other unique positions. Right now we have a convenience store manager and training position that’s open that’s a great opportunity for someone that’s looking to get into retail. To come in and work alongside a store manager and gain that experience that they need to eventually put them in in a store on their own. So, it’s a great opportunity.

Boy that is that is now you know like I started our conversation off on Monica, everybody is short on employees uh what has it been like to try to go through all the interviews and try to get people involved in the process uh what’s it what’s it like I got to believe your stress factor as the human resources manager has been uh staying pretty persistent.

Yeah, I mean we’ve definitely been very busy trying to work with our managers and find candidates that are the right fit we do have some good quality candidates that are applying so it’s always great I encourage everyone to check out our website, www.ALCIVIA.com. Check out our careers page and you know if anybody’s got any questions reach out well and like you said these are good paying jobs in the rural community that’s not always necessarily a given.

You don’t have to go to the city center to be a part of ALCIVIA and have a good career right?

Correct, correct yes. Throughout our footprint there are many opportunities you know anywhere from feed manufacturing operators fuel delivery associates you know all the way down to our C stores. There’s part-time positions available if someone’s looking for part-time even in you know all the small communities that we that we are a part of never overlook the opportunities for you your family your career within ALCIVIA.

Monica Brantner along with us she is the gal that will be working with you to find those opportunities. She’s a human resources manager for ALCIVIA cooperative remember as she said ALCIVIA.com/careers can get you started.

And that my friends is our ALCIVIA co-op talk featuring Monica Brantner human resources manager. Check out their website again today for all the opportunities near you ALCIVIA.com.

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Josh Grunnet discusses ALCIVIA’s approach of marketing the cooperative’s grain and doing our part to help our members manage their grain marketing opportunities.

If you can figure out these markets, you’re a better man than I, and that’s why on our ALCIVIA co-op talk today we are visiting with Josh Grunett. Josh is the senior grain merchandiser with ALCIVIA down at the main office in Cottage Grove. Josh will tell you the last year or so with everything going on in the world, from supply chain, to Covid, to wars, to weather, you got a tough job.

Yeah, that seems to be almost an understatement some days you hit on all the high points that’s for sure well high points or low points I don’t know what they are.

But Josh, you must look at these through the eye of a merchandiser working for a cooperative like ALCIVIA where farmers best interests have to come into play. How do you do that? What is your business model and your marketing model that you have at ALCIVIA?

Exactly that’s what we look at every day, I try to get the grain through the supply chain to where our destination customers want it and when they want it. To try to provide bids and markets for farmers so they can deliver to our elevators or to whatever market they see fit and deliver when they want it. They often also don’t want to sell it at the current price, and we try to smooth the waters out because as you alluded to with wars, and supply chain issues, and every year we have weather events, which last year was no different, it creates just a lot of choppiness in the marketplace. So, we’re trying to use the co-ops assets, rail, truck, and different supply chain lanes and matching up commodities back and forth to get the farmer the best price and get their grain to where it needs to go trying to think about that first and foremost every day and then navigate all the headwinds that you alluded to.

The challenge isn’t only to identify market trends but get that information down to the farmers so they can make marketing decisions. A good a system is how comfortable are you with a system, at ALCIVIA that you have that contact with the farmers on almost a daily basis with many of them that are active marketers.

You got it, and that’s one thing we pride ourselves on is trying to get that information to the producers through our grain origination team we have here at ALCIVIA.

We’re trying to do that every day with our other divisions, energy, agronomy, to try to understand the big picture for the farmer and try to come to them with answers for all the things they have. You’re spot on with kind of the changes that’s happened in the last couple years starting with some of the pig flu in China, supply chain issues, and then the war. We’re definitely in a high-priced environment and certainly understand these growers which were operating a business three years ago with a certain dollar amount they haven’t changed their acres or their production and all of a sudden, the business that they’re running is as three times the risk or three times the amount of dollars tied up into it just because the price of their commodities that they sell and their inputs have almost tripled.

So, these farmers are trying to manage a little bit riskier business today and we’re trying to help them through that certainly a new time for that but as markets go you look at a historical chart and we have high-price times and low-price times.

That’s one of the things on the horizon is how are we going to manage through a correction in price and how do we not get over our skis there. How do we help our farmers try to navigate that and just keep them up with marketing opportunities, continue to keep them sticking with, their marketing plan, and selling grain out in front, not get caught up in the day-to-day commentary of what’s happening on the news.

Just stick with a good profitable marketing plan and I think the key word there Josh is one of the key words “opportunity.” That’s what ALCIVIA’s grain merchandizing team will give you led by Josh Grunett. Again, Josh is a senior grain merchandiser, stay in contact to make the most of your marketing opportunities Josh granted with us on our ALCIVIA co-op talk program.

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In this episode of the ALCIVIA Co-op Talk, CEO and President Jim Dell gives Pam Jahnke an overview of how things are going at ALCIVIA.

It’s time again for our ALCIVIA co-op talk all together in our communities helping to support wisconsin agriculture as well as our consumers. And I tell you what we’ve got a special guest with us today his name is Jim Dell he is the President and CEO of ALCIVIA. We’re pleased to have him along with us. Boy you know I’m glad I got to kind of sneak a few minutes with you Jim, I’ve got to believe that the pace around the office as well as out in the fields been pretty hectic for all of the ALCIVIA staff.

Yeah, thanks Pam for having me on and it’s been a you know off to a slow start in April with the spring season and then May got kicked into gear and we are full steam ahead at this point in time. Trying to get caught up and you know mother nature’s throwing a few things at us each day a little bit more wind than we’re used to but you know things are moving along. We want to thank all the patrons for their support, and we’ll keep putting the application product out there and moving forward.

Yeah, how did you do managing through the spring workload Jim? I know you and I had talked previously about the strategy within ALCIVIA to try to staff up and have everybody ready to go, how did the plan play out?

Well, you know surprisingly, we were able to pull enough folks together both locally here and we brought over H2A folks to work with us again this year about 60 of them in both trade territories. That’s been working out very well along with everything else, so we’ve come through it fairly well and I think our services have showed that we can uh we’re getting it done for our patrons.

That’s good, that’s good have you heard anything about supply chain issues Jim? I mean you guys can only be in charge and in control of so much. I know ALCIVIA tries to lay in a lot of product, but how are we looking from this point forward on things like fungicide, you know secondary weed catchers, how’s that looking?

Yeah, you know there had been certainly a lot of planting put in this winter in the spring to make sure we had enough product on hand and for sure there’s been some substitutions that have happened as we have not been able to secure 100 percent of everything we needed. But our customers were well educated and understanding, and we’ve been able to substitute and get through the season with different chemical combinations and it’s worked out pretty good. Thus far we’re staying ahead of the game so we’re pretty pleased with that.

Yeah, well you know we’re all optimistic I mean we take a look at the crops that we’ve got in the ground and then we take a look at the markets and boy Jim, I’ll tell you markets are presenting some decent opportunities when it comes to the 2022 crop. And 2023 you got a whole staff keeping an eye on that

Yeah, from a grain marketing standpoint you know we got some real opportunities, strong markets here obviously for 2022 should bode well for our customer base and you know just encourage our customers not to forget about next year and in the following year. As we can put on hedge to arrive contracts with them and get some of that locked in especially if they’re taking a look at locking in you know fall application as we’re trying to get that secured here the next few weeks, but you know the markets are strong they, seem to be a strong demand pull and there’s lots of areas that are going to need product.

You know west Texas is struggling a little bit right now and so that’s going to be in the U.S. market and then of course our export markets are strong as we speak as well. The flow of grains going to change a little bit as we move forward to hit some of those demand points and you know some of that is a result of some of the war things and different things like that geopolitically that are going on.

Yeah, right if you’re just joining us this is Jim Dell president and CEO of ALCIVIA. Let’s talk like you said about being proactive I think sometimes we’re a little hesitant to pull that trigger Jim, we’re one natural disaster away from seeing prices go up again. Your staff walks people through the process and helps them look at all their options, don’t they?

Yes, we do. You know how a person can easily get tentative with the higher fertilizer prices right now and I totally understand that. But as you look at combo-ing that with sales of grain, actually, the margin per acre is pretty decent and I think that’s really where we all need to keep our focus and work through.

You know not yet too hung up on the price per individual input, as we go through just how it impacts the overall cost per acre and then what’s the revenue per acre let’s not forget about that. We focus on costs a lot, but revenues are all oftentimes not focused on as much, but like you said they are the critical element.

Jim Dell along with us President CEO of ALCIVIA like he said try to be proactive folks as best you can if you’ve got a crop in the ground, how are you going to market it? If you’re planning on 2023, can you protect yourself in different ways? And of course, for all you consumers out there let’s think about our summer fill program and getting ourselves ready for winter months that believe it or not are just around the corner. You can take care of it all with our friends from ALCIVIA. Jim Dell president and CEO of ALCIVIA, along with us today on our ALCIVIA co-op talk