December 11, 2019

Archives for August 2012

Belmond East Soybean Facility Holds Open House

MaxYield Belmond MaxYield’s Belmond “East” soybean receiving and storage facility held an open house August 30th to show area clients the improvements made to speed up fall harvest delivery.

The team was eager to show off the new outside soybean pit that adds 12,000 bushels per hour of capacity.

In the past, the Belmond ‘east’ facility handled about 5000 bushels of soybeans per hour through the two inside receiving pits.

Total receiving capacity is estimated to be at least 17,000 bushels per hour.

MaxYield Cooperative BelmondThe increased receiving speed comes courtesy of the new outside pit, new grain leg, and new, larger conveyance equipment.

Thank you to our clients, members and team that were on hand Thursday to view and celebrate the improvements.

 

 

 

MaxYield GE-Max LLC litter equipment

Also on display at the Belmond open house, was this litter application machine from GE-Max LLC.

 

MaxYield Seed

MaxYield Seed’s commercial application equipment on display.

Belmond Fertilizer Facility Construction Begins

MaxYield Cooperative Belmond Fertilizer FacilityMaxYield Cooperative board of directors recently approved the construction of a 22,425 ton dry fertilizer storage and blending facility in Belmond.

Construction has begun with site preparation and dirt work.

The new facility will be constructed by Stueve Construction of Algona.

The new facility is under construction southwest of the Belmond grain bunker. The 22,425 ton facility will incorporate ample storage including two 8,000 ton bins, two 3,000 ton bins and smaller bins for micro-nutrient storage.

We anticipate the first fertilizer product being delivered to the facility in the spring/summer of 2013. Blending and load out operations will begin with the 2013 fall agronomy season.

Soybean Worries Spur Asian Buying

MaxYield grain analyst Karl Setzer weighs in on soybean demand issues, in this article appearing in the Wall Street Journal…

By SAMEER C. MOHINDRU, Wall Street Journal

PHUKET, Thailand—A Taiwan importers’ association bought soybeans Tuesday, in what might seem a routine tender. But it wasn’t.

Instead of buying one cargo of around 60,000 metric tons, as usual, the Taichung-branch of Taiwan’s Breakfast Soybean Procurement Association bought three, including one not due for shipping until next July. It was the second time in less than a week that a Taiwanese buyer had taken above-average or far-forward amounts.

As prices for soybeans, like these growing in Oakland City, Indiana, rise, the growing order volume is sparking worries about the global supply of the beans, which feed both people and animals.

With prices already in uncharted territory and an even tighter market in the future seeming all but inevitable, soybean importers elsewhere having been locking in supplies, too.

Prices for wheat and corn are also soaring as dry weather in regions from Latin America to North America, Russia and Australia eat into harvests. But the time bomb ticking under the global soybean trade is potentially more explosive. Corn and wheat can be substituted for one another for many uses—but soymeal substitutes are limited, and even costlier. The high-protein meal, which is what remains after the oil is extracted from the beans, is used in animal feed.

Worries about soybean supplies started with drought in several parts of South America earlier this year. The U.S. and South American countries account for more than 93% of the global soybean trade.At the time there were hopes that the resulting shortfall would be made up by a good crop in the U.S., said Abdolreza Abbassian, Rome-based secretary of the Food and Agriculture Organization’s Intergovernmental Group on Foodgrains.

But instead dry weather has hit the U.S., too, and the 2012 crop is wilting in the fields. Last week, the London-based International Grains Council cut its forecast for global soybeans output for the 12 months starting Oct. 1 by 3.8 million tons, or 1.5%, and that’s assuming a rebound in South American production next spring.

The U.S., the world’s top soybean producer and exporter, may almost run out by the time next year’s crop is harvested in the autumn of 2013.

“Technically the soybeans inventories may not fall to absolute zero because there are always at least some soybeans somewhere, but still by the time the 2013 harvest arrives a year from now the trade pipeline will be empty and the U.S. will be importing more soybeans than usual,” said Roy Bardole, chairman of the U.S. Soybean Export Council.

This year’s U.S. crop is being snapped up fast, with about 55% already sold for export, a record for this time of the year. By the time the harvest is over, the entire crop is expected to be have been sold for forward shipments, said Karl Setzer, an Iowa-based analyst with MaxYield Cooperative.

Reduced availability and higher prices are spurring importers to buy more, not less, as a hedge against even higher prices in the future. China, which accounts for more than 60% of the world’s soybean imports, is also buying cargoes several months before shipment. Demand there is driven mainly by double-digit annual growth in dairy-product consumption, 5% to 6% growth in poultry consumption and 3% growth in pork consumpion, said Christopher Langholz, the business unit leader at Cargill Investments (China) Ltd.’s animal protein division in Shanghai.

Demand is rising in Southeast Asia, too. John Lindblom, the U.S. Soybean Export Council’s director for the region, says U.S. soybean exports there could rise by 12% next year despite the drought, particularly due to creation of fresh crushing capacity in Vietnam.

“Soybeans can and will likely top $20 a bushel,” said Iowa analyst Mr. Setzer. “I wouldn’t rule out $25 on spot soybeans by spring, maybe even higher” Near-month futures on the Chicago Board of Trade hit a record $17.7775/bushel last month. They finished Tuesday at $17.4525.

High prices could encourage growers in South America this fall. The area planted to soybeans could grow by 4.3 million hectares, or almost 9%, Thomas Mielke, executive director of the Hamburg-based journal Oil World Global Research and Analysis, projected.

But the FAO’s Mr. Abbassian cautioned that increased soybean planting isn’t a certainty, pointing out that near-record prices for corn are providing an incentive of their own.

Fiscal Year Results Announced

 West Bend, Iowa – MaxYield Cooperative® recently announced their fiscal results, for the year ending July 31, 2012.

“We are grateful for the support of our members and clients, as we just finished a solid year. MaxYield posted another strong year financially with local savings reaching a level preceded only twice in our history,” said MaxYield Cooperative CEO Keith Heim.

Local savings of MaxYield Cooperative for the 2011-2012 fiscal year exceeded business plan with Local Savings from Operations reaching $4,110,000. Patronage from other cooperatives totaled over $4.2 million. This combination of earnings resulted in a level of pre-tax Total Savings for MaxYield over $8.3 million.

Over $4.8 million will be returned to members in the form of patronage allocations and Section 199 Domestic Production Activities Deductions.

Heim went on to say that sourcing over 114 million bushels of grain during the fiscal year was a milestone for the company. Increased sales in corn, dry and anhydrous ammonia fertilizers, crop protection products and diesel fuel contributed to the strong fiscal results.

The cooperative’s annual meeting is slated for November 28, 2012.

MaxYield Cooperative is local member owned cooperative with 19 locations and is headquartered in West Bend, Iowa. More information regarding the cooperative is available online at www.MaxYieldCooperative.com.

Garner – in bloom

MaxYield Cooperative GarnerMaxYield’s Garner seed and agronomy location was in full bloom last week. Apparently, its more than just corn and beans that they see more of in your fields.

 

Thank you to Mike Zweck and the entire Garner gang for taking pride in their facility!

 

 

 

MaxYield Cooperative Garner flowers

 

 

 

 

 

 

 

Labor Day CBOT trading hours

The Chicago Board of Trade will observe the following hours in observance of the Labor Day holiday:

Friday, August 31st           Regular Close

Sunday, Sept 2nd               No Trade

Monday, Sept 3rd                    No Day Trade

7:00pm Open Night Trade

 

Brazilian Ag professional visit area

 

MaxYield Coop and Brazil Guests

From left: Antonio Grasi, Elder Simm, and Olmar Lanius with the INTL FCStone tour and Rod Meyer, retired director of the Kossuth County Cattlemen and current grill volunteer, during a meal provided by MaxYield for 28 visitors from Brazil on Monday, August 20. Photo by Mindy Baker

MaxYield Cooperative hosts international ag business tour
By Mindy Baker, Editor
Algona Upper Des Moines

Call State Park was the location of a unique meeting of the minds on Monday, August 20, as MaxYield hosted a tour group of 28 members of the agriculture industry from Brazil, feeding them a traditional Iowa gourmet grill out meal of beef filets.

In early March, three members of MaxYield, including Keith Heim, CEO, traveled to Brazil, where they met with Eduardo Sanchez of INTL FC-Stone, an international consulting firm.

“Brazil has become a key player in the world market,” said Heim.

While in Brazil, Sanchez introduced Heim to many aspects of the South American agriculture market, including soybean processors and biodiesel.

“We went to an ag fair where there were more than 160,000 people in attendance,” said Heim. “Eduardo did a great job hosting the tour, and stated that he would have an interest in bringing a group to the United States.”

On Sunday, August 19, the tour landed in Minneapolis, MN, and began its whirlwind tour of Minnesota, Iowa and Illinois. The tour will finish up at the Chicago Board of Trade before heading home on Sunday, August 26.

“Our main goal is to see how the United States does business, the infrastructure, technology, and such compared to Brazil,” said Sanchez. “The tour has producers, merchandisers, crushing plant operators – a variety of ag related businesses.”

With two-inch thick steaks grilling slowly on the Kossuth County Cattleman’s massive gas grill, the tour met with members of MaxYield Cooperative.

“With the drought in the United States, many of the producers want to know how it will affect them,” said Sanchez. “My firm teaches the producers how to protect against market volatility, which is why we’ll end the tour at the Chicago Board of Trade.”

He stated the tour members were impressed with the way Minnesota and Iowa use the Mississippi River system to move grain.

“We have tons of rivers in Brazil, but not much government or private investment in shipping,” said Sanchez.

Other differences included the increased use of technology in the United States.

“Here, you will have 12 employees doing what 50 are doing in Brazil,” said Sanchez. “It is technology versus manpower. We need to learn to do things differently, more effectively, but our main goal is to see how things are done.”

It is healthy to learn from each other,” said Heim. “While the United States is still lead player in production, it means that if we have a reduction in yield (like the current one caused by the drought conditions) it has a major impact on the world market. There is currently a lot of talk in trade about the need to ration soybeans or we’ll run out before South America harvests in the spring.”

New crop soybeans, demand get attention

This article first appeared at www.IowaFarmerToday.com.

 

Traders’ attention has turned to the new-crop soybean supply as well as corn and soybean demand.

That means beans are the market leader at the moment as traders think about what the new-crop supply will be when harvested this fall, notes Karl Setzer, grain solutions team leader for MaxYield Cooperative in West Bend.

He says current carryout is forecasted at 130 million bushels. If soybean yields drop 1.5 bu./acre from the national average yield, it would wipe out the new-crop bean carryout. That is one reason why traders are trading higher old-crop beans until they know the new crop bean production, Setzer adds.

He says the current crop tours should not produce any market-surprising news as trade has figured low corn supplies into the market, and soybean yield estimates are tough to be accurate.

However, Setzer says corn demand is starting to drop. He says export basis is negative enough barges filled with corn harvested in the South are being pushed north on the Mississippi River.

“That is practically unheard of.”

Since May, when the USDA came out with the first supply and demand report for new-crop corn and beans, Setzer says corn demand has dropped by the same amount as new-crop corn production. He says there is an interaction between the corn and bean demand markets since ethanol production has slowed, so has the DDGs production.

Therefore, that has increased demand for soybean meal.

Setzer says it is possible the United States might run out of beans for domestic use by March. However, the trade is more concerned about short-term needs than long term.

He says it looks like South America will need to cover world soybean supplies early next year, and they are looking to increase production from this past year.

Setzer says there is some early talk about the need to purchase acres for the 2013 growing season.

Rich Hanson Retirement Coffee – August 31

Rich Hanson will retire from MaxYield Cooperative after many years of service to the industry and area farmers. We will be honoring Rich for his dedication to our company with a retirement coffee held:

What: Rich Hanson retirement coffee

When: Friday, August 31, 2012

Time: 1:00 p.m. – 4:00 p.m.

Where: Algona MaxYield office, Hwy 169 South

Light Refreshments will be served.

You are invited to help wish Rich well as he retires. We wish him well!

MaxYield & Green Plains Renewable Energy Extend Agreement

MaxYield Cooperative is pleased to announce that we have extended our grain origination agreement with Green Plains Renewable Energy at Lakota, IA for an additional three years, effective November 1st.

With the extension, MaxYield Cooperative will continue to provide grain origination services at the Lakota ethanol production facility through at least October 31, 2015.

MaxYield looks forward to providing grain marketing solutions that are mutually beneficial for area farmers and Green Plains Renewable Energy at Lakota.

More information about MaxYield Cooperative can be found at www.MaxYieldCooperative.com.

Information regarding grain marketing opportunities at GPRE at Lakota, can be found online at www.MaxYieldGrain.com.