7/19/2024

 

  

Manager Comments
By Mark Finck, General Manager/CEO
 

We are in the final stages of permitting for the new dry fertilizer plant at Dimock.  We received the approval from the Hutchinson County Zoning Board for the conditional use permit and received the building permit from Hutchinson County which we needed to submit to the State Department of Agriculture and Natural Resources along with the plans for the new plant at Dimock.  Our timeline has the site preparation and concrete work being completed in the last half August/September time frame with equipment delivery in December for erection and plant completion prior to Spring of 2025.

Our fiscal year ends this month. Please have your accounts brought current prior to the end of the year.  If you need any input financing, please let us know. We have financing options available through Cooperative Credit Company at a much better rate than the 18% we charge for past due accounts.

We were fortunate with the flooding on June 21st -23rd that we did not end up with any water in the Montrose Feedmill, (September of 2019 flood had water in Feedmill basement).  Tyler McCoy reached out for assistance in moving bagged feed out of one of the warehouses and employees from Lyons, Salem and Marion assisted and we were able to move everything out prior to water coming up into the warehouse.  As the water receded, we were able to start manufacturing feed on Sunday afternoon and wash out the affected warehouse Monday the 24th.  A big thanks to all the employees who assisted Montrose during the flooding!

We currently have a Board Advisor position open in District 1 (west of James River).  The Board Advisor role allows for a member to serve in an advisory capacity and participate in discussions during board meetings.  Current Directors Matt Eichacker, Mark Ortman and Andrew Streff all started out as Board Advisors.  If you or someone you know would be interested, please contact me or one of our directors for more information.

Thanks for your business, it is greatly appreciated!

Fungicides
By Leo Hoiten, Agronomist, Lyons

I hope most growers in our trade area are finally starting to wrap up the spraying and spreading as the weather has allowed us to get back in those fields.  With the recent moisture we’ve had this summer it has been more of a challenge getting the crops looking how we want them to. The heat and humidity are finally in the air. This is a perfect time to be scouting and checking the crop as we get into reproductive stages in both corn and soybeans. The risk for disease pressure is increasing so be sure to ask about our fungicide options available at all agronomy locations. Fungicides can increase yield by preventing disease in the crop canopy and help make it through the heat and dry weather by providing plant health. Be sure to contact your local agronomist and we can get you taken care of.

Marketing Opportunities
By Jeff Moritz, Lead Grain Merchandiser

Wheat harvest has started in earnest this week and by all accounts yields have been pleasantly good. Customers have been reporting yields in the 70-95bpa range. Hopefully, those results are a positive foreshadowing for our Fall Crops.

Speaking of Fall Crops, we just finished the pricing of our Short Dated Average Seasonal Price program for Corn and Soybeans. Prices ended up being very respectable as compared to the current New Crop Market
as Corn Price is $4.62 December Futures versus a current December Futures price of $4.08. Soybean price is $11.60 November Futures versus a current November Futures price of $10.45. Our Longer-Term Average Seasonal Price Contract is still in Progress, but currently Corn Price stands at $4.65 December Futures and Soybeans are at $11.64 November Futures. If these prices are of interest to you and you would like to know more about signing up for next season’s programs and how the contract works, please contact your local CFC Originator and we would be happy to discuss it further with you.

Corn and Soybean markets are finding it difficult to gain much footing against the seasonal price tendency during this time of year. Charts are showing oversold for soybeans and corn is just now climbing out of oversold conditions which could be that markets have found a short-term bottom. The current prices also trail the 20 day moving averages in a meaningful way. Corn and Soybean prices tend to gravitate back to the 20-day moving average whether above or below. Also, The Fund short, Commercial Long are at historical (record) positions.

While I do not think the market is necessarily set up for rally of significant proportions at this point, I do think the set up of these events just mentioned could provide marketing opportunities that should be acted upon should we see any meaningful price strength. Have a great rest of the summer!