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NEWSLETTERS Check in here to see what is going on at Farmer's Cooperative Company.
INSIDE THE COOP February 2012
Grain Comments: Kelli Nevenhoven: Jan. 31st. Wheat was the big driver in the markets today! Corn surged higher as it tries to keep pace with wheat. End of month money flow is also thought to have played a part in the turnaround from yesterday. Lower production estimate for Mexico and Argentina also lent support. Argentina lowered their number to 18.8 MMT from the USDA number of 26 MMT. Mexico backed off their number of 25 MMT to 21.8 MMT. Soybeans were called lower before the opening but put together an impressive session and seemed to be pulling corn higher. Firmness in the cash market supported the rise despite rain in South America. More rain is forecast for the rest of the week. We are now offering Free Price Later grain contracts. There are rules and regulations to be followed as well as storage availability so please check with me for details.
Propane: Gary Raisch: The mild weather continues which makes you wonder how February and March will be. If you have a new home heating system installed since January 1, 2012 or later the Iowa Propane Gas Association has a rebate program of $250 for you. They allotted $100,000 for the program. It is a first come first served basis. To apply see or call me for more details and forms. For the farmers we can start looking at this coming falls booking. At the present time it is 15 to 20 cents cheaper than last fall.
Refined Fuels: Larry Weidemann: Greetings to all on a muddy and foggy day in February. I think we might have our month mixed up a little: hope that gets straightened out. Since fall the oil market has pretty much been trading sideways, however as of the last few days it has shown some strength. We still have time to watch, but it does bear watching. We seem to be well supplied and maybe oversupplied so the strength is surprising to me. Hope this spike is short lived and a better number is found. As always, don’t be a stranger. Call or stop in to talk about your fuel and oil needs.
Agronomy: Steve Muhlenbruch: Winter is going by very quickly. We hope everyone has been enjoying the unusually mild (so far) winter we have been experiencing. Since planting is still over 2 months away I thought this would be a good time to review the management of planting continuous corn. Managing residue ahead of planting and preparing a good seed bed is important for soil temperatures to warm promoting rapid early season growth. Even emergence may be a benefit of proper seed placement and making sure there is good seed-to-soil contact. An additional 50 to 60 pounds of nitrogen per acre will be needed to compensate when soybeans are left out of the rotation. Fertilization may need to be adjusted to meet corn on corn nutrient uptake. Should you consider applying fungicide to your 2012 corn crop? Foliar fungicides do not increase corn yields they do however help preserve the yield your crop produces and make it possible to harvest more of that yield. 2011 studies showed yield increases of from 10 bushels per acre when fungicides were applied at V5 stage to 15 bushels per acre when applied at the VT stage and 17 bushels per acre when applied at the V5 plus VT stages. One key to evaluating the potential of gaining value from fungicide application is by knowing the probability of disease development in your fields. Major corn foliar diseases include gray leaf spot, northern corn leaf blight, southern corn leaf blight, southern rust and common rust. Fungicide application, tillage, crop rotation and proper hybrid selection can help manage disease. While the 2012 growing conditions remain unknown, we can prepare for the challenges ahead. Dekalb and Asgrow offer hybrids with traits that can help minimize your risk. We plan to have some extra seed in the shed to meet your spring needs. Fertilizer markets have been very quite over the last month. We will try to keep growers informed of the markets as they develop. With chemical pre -pay almost finished I am very pleased to see most all growers using foundation herbicide along with tank mixes on both corn and bean acres. We need to continue to focus on weed resistance by using pre herbicides to control the seed bank and by applying timely [post applications tank mixed with residual control on emerged weeds. “Lack of money is no obstacle. Lack of an idea is an obstacle.” (Ken Hakuta) As always thank you for your support. We look forward to doing business with you and listening to your ideas.
General Manager: Vic Vandehaar: At our grain marketing meeting held last month what I came away with is the tremendous down side risk we are facing in the corn market. Pay attention to new crop prices and put in offer contracts with Kelli. Downside risks out weighs the upside potential. We are hearing more producers planting more corn acres and if weather cooperates this summer a large harvest is anticipated. Better to hit consistent doubles than to go for broke. One forecaster is predicting a dry April and a wet May. If that is true we need to get the corn in the ground as soon as conditions are fit. Our agronomy department is ready to go! Closing thought for this month. “If you want to go fast, go alone: if you want to go far, go with a team.”
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