Seasonable type weather has finally arrived and although it’s been an unusual year of weather, very nice results should be reflected on your yield monitors.  History says that “big crops get bigger” and this year’s crops looks to be no different.

            Basic supply and demand economics tell us that grain prices will suffer unless additional demand is found or something unforeseen occurs.  Lately it seems every conversation involves some degree of discussion pertaining to the late developing crops and the remaining freeze damage potential.  Truth is, the clock is about to strike midnight and many hopes and dreams of selling corn anywhere near $4.00 may require selling in hundred weight terms.  For example, $2.75 per bushel corn would be $4.91 per cwt.  Most all areas, even the latest maturing, will make corn at this point.  Quality loss would probably be the biggest factor if a freeze occurred between now and the middle of October.  From a marketing standpoint, look to lock in corn market carries and I’m not sure I’d spend too much money on an option, knowing what I do today.

            Soybean inverses have quickly come in as new crop beans begin to fill the bins.  First quarter sales to China have been brisk as the United States has been and will be the market for another three or four months until South American crops come off.  Whether or not China will continue to buy is obviously unknown.  Otherwise, South American growing conditions and any additional US export business will need to be watched for additional pricing opportunities.

            Due to strong front-loaded bean demand, soybeans need to be shipped straight to market.  After reviewing our grain handling projections, we expect space limitations at some locations this fall.  Thankfully this strong early soybean demand allows grain handling facilities the ability to offer Delayed Pricing (DP) programs to gain much needed ownership so movement of this grain can occur.  Many areas of the Corn Belt are going to have difficulties handling the size of this crop, and we’re no different.  Ag Valley will be offering discounted storage rates to soybeans enrolled in our DP program.  While normal storage rates on soybeans now run approximately 4.8 cents per month, beans signed up in the DP program will accrue storage charges of only 3.8 cents per month.  Many variations of this type of program will be offered across the country this fall and some will make it mandatory that all or part of your production be DP’d but we at Ag Valley have chosen to give you the ability to make that decision.  We understand that being told what to do doesn’t sit well with many of you.  We ask that you give this serious consideration though as it can be a marketing program that works for all of us.  It helps us keep more bushels off the ground outdoors where it is subject to additional associated risks and you still keep total control of when and for what price your grain is sold while accruing fewer service charges on your grain in the mean time.  You do the math but quantities may be limited so call us today for details.

            For those of you wishing to take advantage of our popular out-of-the-field trucking program, we still have a sizable fleet of trucks to help deliver your harvested grain to town.  There may be times during the peak of harvest when our trucks are spread thin, so an open line of communication will help us best utilize our trucks to cover all of your needs.  Contact our dispatcher Jim Kragelund for your freight scheduling needs.

            As always, we ask that you please take the time to notify our grain personnel of any new accounts beforehand and to correctly instruct our scale people of ownership and splits when arriving.  Just as importantly, make sure your drivers check every scale ticket for accuracy.  All of these efforts will greatly help our efficiency and get you back to the field much quicker.

            First delivered bushels will be applied to contracted grain.  We ask that you notify us if you want paid immediately or payment deferred to a later date.  This helps eliminate issuing unnecessary checks and will get you paid in a timelier manner.

Please review our updated grain policies for any other changes related to storage rates, shrink, drying charges and procedures involving warehouse receipts.

            Harvest is a busy time for all of us and we understand that it is your pay day after a year of hard work and expense.  Many hours of thought and preparation have gone into planning how we can best handle your crops but long lines may at times still be inevitable.  Maybe we’re trying to finish filling a bunker or ground pile so that we can cover and secure it before adverse weather moves in or possibly an unfortunate breakdown still occurs, even with preventative maintenance measures in place.   We promise to give our best effort and thank you for your business.  Best wishes for a safe harvest.