May 1, 2019 Grain Commentary

Corn is slightly higher this morning up 1 to 2 cents while beans are under pressure down 7 to 9 cents. Locally heavy rain reported in the area any where from 2 to 3.5 inches. The Mississippi River is expected to rise to levels again that could shut down barge loading in STL for the first part of next week. Basis is firm for FH May delivery due to the Upper Miss and the IL River closures due to high water. They are expected to be down even longer.

After the slow start corn and beans both recovered. Corn ended the day up 6 while beans closed down a couple.

Corn is looking better technically as late planting ideas gather steam.  July corn poked its head above the 20-day MA for the first time since March 29th and closed near the day’s high.  Spreads narrowed.

Beans bear the brunt of weather delayed planting – less corn acres usually means a few more bean acres, which we don’t need.  Beans finally got some spillover support from corn and wheat and were able to close in the middle of the day’s range.

Bringing live market information directly to you

CHS will be bringing market information directly to its growers in a new way on Tuesday, July 14.

In light of current conditions with COVID-19 across the United States, we will be bringing market information to you virtually, rather than in-person meetings like we’ve done in the past.

On Tuesday, July 14, there will be two different live broadcasts to talk about corn, soybeans and wheat markets.

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Freeing phosphorus: New ways to add crop nutrient availability

An innovative option makes broadcast crop nutrient applications more available.

Farmers wouldn’t be satisfied with just 20 percent weed control from a herbicide application, but that’s typically the best nutrient availability they can expect from dry phosphate fertilizer applications.

“Under the best soil conditions, only one-fifth of applied phosphorus may be available to the crop throughout the season,” says Steve Carlsen, Levesol and crop enhancement manager, CHS Agronomy. “Availability is even less when soil pH levels are too high or too low or in soils that contain too little organic matter.”

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Micronutrients 101: Going Back to Basics

This article first appeared in the LIFT newsletter, a publication of CHS Agronomy. Read the entire article.

As growers finalize planting preparations and plan in-season fertilizer and sidedress applications, they may be looking for solutions for micronutrients deficiencies identified by soil or tissue sampling on their most productive acres. What are the most essential micronutrients and what products can help with yield and profitability?

The essential micronutrients include Zinc (Zn), Iron (Fe), Boron (B), Copper (Cu), Molybdenum (Mo) and Manganese (Mn).

  • They are considered micros because they are needed in smaller amounts compared to macronutrients by the plant.
  • Many micronutrients hold the key to how well the other nutrients are used; attribute to how well the plant develops and effects the total yield it will produce come harvest.
  • They also help feed the microorganisms in the soil to perform important steps in various nutrient cycles of the growing process.
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CHS reports $125.4 million in second quarter net income

Sunset over a farm

April 8, 2020

Dear Owners:

We are pleased to share our second quarter results for fiscal year 2020. We reported net income of $125.4 million for the second quarter of fiscal year 2020, which ended Feb. 29, 2020. This compares to net income of $248.8 million in the second quarter of fiscal year 2019.

The company reported revenues of $6.6 billion for the second quarter of fiscal year 2020 compared to revenues of $6.5 billion for the second quarter of fiscal year 2019. In the first six months of fiscal year 2020, CHS reported net income of $303.3 million compared to net income of $596.3 million in the first six months of fiscal year 2019.

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Update on COVID-19 from Jay Debertin

Dear valued customers and owners:

As our essential businesses work to meet spring season demands amid the COVID-19 pandemic, we continue to focus on the health and safety of every person and community connected to CHS and the cooperative system.

We want you to know that CHS remains fully operational and committed to providing the essential products and services you need. Our supply chain is prepared and moving into action as spring fieldwork begins. Grain is moving and the spring shipping season has begun. We are grateful for those positive signs.

Thank you for your business. Please let us know how we can help you navigate through the days and weeks ahead.

Sincerely,

Jay D. Debertin
President and CEO

Updated message about COVID-19

On March 20, Illinois Governor JB Pritzker issued a state-wide shelter-in-place order to take effect at 5:00 PM CT, March 21. Consistent with guidance from the United States Department of Homeland Security, the order exempts certain essential infrastructure and services, including agriculture and food. After a full review of the order, CHS has determined that its operations fit within this exemption and we will continue to operate to provide essential products and services so cooperatives and farmers can plant and grow crops, raise livestock and bring the food they produce to market.

CHS employees across Illinois will continue to observe company guidance working from home or operating CHS facilities as they have been since March 17. Revised procedures introduced last week remain in place across our footprint to protect the health and safety of employees, customers, suppliers and the communities we serve. Those procedures include:

  • Remote work, social distancing and following CDC guidance to protect the health, safety and wellbeing of employees, customers, suppliers, and communities
  • No non-essential visitors to CHS locations and additional on-site health, safety and cleaning procedures
  • Use of voice, video and other technologies to serve customers and conduct business, including online meetings or phone coordination of farm services
  • Continued observation of all safety guidelines, including use of personal protective equipment
  • Leveraging our flexible supply chain and asset base if it becomes necessary to deliver to or from alternate locations
  • Continuity plans to flex employees between locations or business units as needed to better serve customers

At CHS, the health, safety and wellbeing of our employees, customers, suppliers and communities are our highest priority. We remain committed to our purpose of creating connections to empower agriculture by supplying essential products and services for our customers and owners.

A message about COVID-19

With the impact of the global pandemic caused by COVID-19 evolving rapidly, we want to reassure you that CHS is taking steps to protect the health and safety of our employees, our owners and customers, and the communities we serve.

We are developing plans with the goal of continuing to provide the highest possible level of service to our customers and owners. Specific measures include:

  • Close coordination and collaboration to ensure safety and wellbeing of employees, customers and communities
  • Cancelation of annual meetings and other meetings of large groups and limiting visits to CHS facilities
  • Additional use of voice, video and other technology to serve you, our customers and coordinate farm visits
  • Activating plans to flex employees between locations or business units to better serve you
  • New process and rigor for interactions with vendors, suppliers, contractors or other third parties to promote health and safety
  • Fully utilizing our powerful and flexible supply chain and asset base should it become necessary to deliver to or from alternate locations

As the busy spring season unfolds, we will continue to adjust as circumstances change. We don’t take this challenge lightly, but we’re committed to working through it with effective planning, communication and execution. With our talented and committed team, best-in-class assets and our values of safety and cooperative spirit, we are confident CHS will continue to deliver products and services for customers and value for owners.

Learn ways to stay safe during Grain Bin Safety Week

grain bin safety training

Grain bins can be dangerous places. Purdue University researchers report that bin-related injuries such as entrapments, equipment entanglements and asphyxia are on the rise – more than 60 incidents occurred in the U.S. in 2018. 

As part of our commitment to safety as a core value, CHS is partnering with other ag industry leaders to support Grain Bin Safety Week, Feb. 16-22. Here are the top three things you can do to promote safe practices around grain bins:

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Freeze warning

Decrease the risk of cold-weather downtime with the right diesel.

use the right premium diesel during cold weather

When temperatures drop, a farmer’s work doesn’t stop. Keeping equipment running at its peak during colder weather requires a watchful eye on what’s in your fuel tank.

Here’s the main problem that comes when temperatures drop: Diesel fuel hits its cloud point — the temperature at which wax crystals begin to appear in the fuel, also known as gelling. Cloud point is reached in #2 diesel fuel when fuel temperatures hit 4 to 14 degrees Fahrenheit, depending on where you buy your fuel, says Chad Christiansen, manager of product quality and additives for CHS.

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