Jan 30, 2014

The farm on which I grew up has changed hands — probably more than once — since my parents passed away. My brother worked the land for a while, but the era of small dairy and hog farms with 120 acres of corn and alfalfa is a few decades behind us.

Oct 7, 2013

Corn basis slid for the sixth consecutive week falling another 11 cents this week amid harvest pressure, while Soybean basis lost 3 cents for the week ending October 3rd.

Harvest pressure has already been affecting basis for a few weeks, so when will basis bottom? Figure 1 illustrates that in more normal harvest year’s spot basis tends to bottom around the first week of October, but with some northern crops still behind in development this year basis lows may still be a week or two away. As of September 30^th美国农业部的报告显示,12%的美国玉米丰收compared to the five year average of 23% harvested. Soybeans were 11% harvested compared to the five year average of 20% harvested. Though the rate of basis decline seems to be letting up a bit, we still expect basis to fall more in the weeks to come Soybeans basis lost 3 cents this week, with parts of western Missouri losing as much as 8 cents. Soybean plants dropped their basis by an average of 5 cents this week while river markets bucked the trend and improved 2 cents on the week.On average, corn basis fell 11 cents this week with the largest losses seen in Iowa which fell as much as 20 cents. Ethanol basis contributed to the decline falling 14 cents as new crop grain comes onto the market. Basis in the southern part of the U.S and along the river remained mostly unchanged for corn.

Sep 10, 2013

This week we saw corn drop 15 cents between Tuesday, September 3^rdand Thursday, September 5^th. Basis was pulled lower by the southern harvest and grain movement up river. Soybeans picked up a penny during that same time period in a lull before harvest pressure begins to weigh on the market.

Corn dropped on average 15 cents this week as the market finished rolling out of September and into the December contract. On average Ethanol provided little support in the cash market tumbling 15 ½ cents this week as well. Harvested southern corn is impacting the cash market significantly and pressuring basis lower. In the week of August 24^thto 31^stmore corn floated up river on barges (53,900 tons) at lock 27 than corn headed downriver (23,572 tons) helping to supply inland grain demand. The effects of harvest should continue to pressure corn basis throughout the U.S as we move deeper into September.

Soybean basis improved by a penny this week between September 3^rdand the 5^th. The market was mostly mixed with Soybean plants dropping basis by an average of 5 cents, while the average basis at river terminals increased by 1 ½ cents.

Aug 19, 2013

Cash market volatility continued this week as tight near-term supplies combined with an outlook for ample production in the coming months keep buyers moving basis erratically. For the week, corn posted an average gain of 2-cents a bushel, while soybeans were up 8 cents on average.

在玉米市场,基础水平在墨西哥湾higher for the week, but rising barge costs are keeping river terminals steady to even in some cases weaker on basis levels. Barge rates had been climbing in the past two weeks but have started to stall out in recent days. For ethanol, average gains across all plants was 2 cents a bushel for the week, but Western Cornbelt plants had numerous plants with double-digit gains, especially in the Upper Midwest were new-crop corn harvest will likely be late to arrive this year. Weekly ethanol grind was up 4,000 BPD rising for the third straight week in a row.

For soybeans, river terminals were weaker on average, falling 5 cents a bushel on the heels of higher barge freight and a falling Gulf market. For soybean processors, basis levels were mostly weaker but extreme volatility was common across plants as some buyers boosted basis by 20 cents or more while others were dropping basis. The NOPA’s monthly crush report for July showed 161 MB of total crush for US soybean plants, off marginally from the June number of 163 mb.

Jul 24, 2013

I recently celebrated my five-year anniversary as a full-time employee of Cygnus Business Media,Feed & Grainmagazine'sformer parentcompany, and nearly simultaneously reached another milestone in my career: being named editor ofFeed & Grain.

在过去的五年里,我已经工作了几l Cygnus publications in various industries (all while serving as part-timeFeed & Grainstaffer), but I always felt most at home among the folks in the feed and grain sector. Through my travels as associate editor to trade shows, conferences and facilities, I've had the opportunity to meet many of the amazing professionals who help make agriculture the fine engine of prosperity that it is today. From our readers, to the trade associations that represent you and the equipment suppliers, everyone I've met has been welcoming, hospitable and eager to share their insights with me.

So, naturally I'm thrilled to be advancing my career within a group of people that I admire and genuinely enjoy being a part of. That’s why my joy can’t help but be dampered by sadness over the high rate of grain-related accidents we've had this summer.

到了7月中旬,一个伊利诺斯州的人已经死于粮食engulfment while working at a cooperative, two men were injured in an elevator explosion in Nebraska and a farmer died near Dayton, OH, trying to empty a grain bin. In June, two men in Indiana died from separate accidents at grain facilities, one involving grain engulfment and an explosion at another. But it started in April, when an ethanol plant worker died by grain engulfment in Milton, WI — a town halfway between my commute from home toFeed & Grain's office. In fact, through "six degrees of separation," I was acquainted with the young man who lost his life. A church in my town held a benefit for his widow and child.

Up until then, I had only read about such tragedies in the news — it never hit close to home on a personal level, but this accident highlighted how in touch I am with this industry. I'm not just an observer, or a mere reporter of your events. I live in the same type of community as you do and experience the same ups and downs that come with being entrenched in agriculture.

And while I don't know the circumstances surrounding these accidents, and I am in no way placing blame on anyone, I do want to bring attention to OSHA's new "stop sign" for the grain industry, which serves as a simple reminder to check all hazards before entering a grain bin.

Here's to a safe and happy ending to your summer!

Jul 11, 2013

In flipping through old issues ofFeed & Grain, I ran across aManager's Notebookfrom 2007 that, although only six years old, had me nearly laughing at how archaic it sounded. It was about effective communication for feed and grain businesses, and had a section dedicated to email. The authors provided a definition for the term "spam" and suggested using filters to remove such unwanted content. They went on to advise creating folders to help organize and reduce clutter from the remaining messages. It even mentioned the "You've got mail!" reminder that AOL made famous in the 1990s. It's hard to imagine a time when this everyday knowledge was foreign to anyone.

Back then, email was one of the few applications feed and grain business managers used their computers for. Today, those same managers are likely receiving and replying to emails constantly via their smart phones and tablets and use computers for more complex tasks, such as running facility operations, accounting and customer service. A lot sure has changed since "Communicating in the Feed and Grain Business" was published.

However, tucked within this seemingly elementary email tutorial, there were a few nuggets of advice that still resonate today, including the tip to not read and answer emails all day long. Authors,John FoltzandChristine Wilson, wrote:

"For many people, email can almost become an addiction — where they feel a need to constantly check it ... but almost all emails do not need to be answered immediately. A good email management strategy is to set aside particular times each day when you will look at your email and answer it. Perhaps it is to read it three times a day (first thing in the morning, right after lunch, and right before you leave in the evening.)."

This advice is perhaps even more relevent today as we are literally tethered to devices that deliver emails instantly. Urgent messages are easy to identify, and can and should be replied to immediately, but otherwise, try to dedicate your time to managing your facility/business/firm — espeically early in the morning, the authors pointed out.

"Don't answer your email during your most productive time of day. Many people are most productive first thing in the morning, when they are wide awake and ready to face the day. Answering email is not typically a task that takes a lot of creativity, so you might consider leaving it until late in the day. This will free up time when you can be most efficient with things that need sharp mental prowess — such as management, personnel and finance decisions."

Their last tip worth noting is so simple it's easy to forget — use good ettiquette. Again, these may seem basic, but who couldn't use a brush up on their email ettiquette? Foltz and Wilson outlined eight key points:

1. "Be concise and to the point
2. Answer all questions so as to preempt further questions
3. Use proper spelling, grammar and punctuation
4. Make it personal
5. Don't attach any unneccessary files
6. Do not write in CAPITALS (it's considered shouting)
7. Read your e-mail before you send it
8. Do not overuse 'Reply to All'"

Please feel free to test your application of these e-mail tips bydroppingme a message about yourself and your feed and grain operation. I am always looking for reader feedback and story ideas. Do you have any tips for better managing your time?

Apr 29, 2013

Cash grain markets felt pressure this week from river flooding and the inverse carry in the futures market. For the week, US average corn basis slipped 3 cents a bushel while average spot soybean basis was off 2 cents a bushel.

Flooding along the Illinois River left many grain elevators shut down at the beginning of the week which caused bids to ease in these areas. However, the Ohio river was largely unaffected so basis levels from Southern Ohio to Southern Illinois found some strength. At the Gulf export market, corn basis was up 4 cents a bushel as limited supplies were able to move to the Gulf. For ethanol plants, average corn basis was off 3 cents a bushel with Eastern Cornbelt plants showing more weakness this week than Western Cornbelt plants.

For soybeans, Gulf basis lost 3 cents a bushel as soybean exports continue to decline along normal seasonal lines. Export sales hit a marketing year low this week with net reductions reported of 206,300 MT on the old crop. River terminals were off 4 cents a bushel for the week while soybean crushing facilities bid up soybean basis by 4 cents a bushel.

Mar 25, 2013

在参加演讲在2013年GEAPS交货change, three elements stood out that I’d like to tie together for you to think about:

1. Weather woes will continue

Dr. Elwynn Taylor from Iowa State University made some projections about our current drought situation. Here’s my take: Don’t expect magic this year. Or, as he put it, “A year as extreme as 2012 is seldom followed by a full return to normal.”

Perhaps even more intriguing is his data that shows corn belt weather shows an 18-year/25-year cycle; 18 years of somewhat stable weather and yields, then 25-years of less stable weather and volatile yields. “I don’t know why,” he said.

That point is important because the Mississippi River likely will remain low and there is at least the potential for another high-value grain year. What if we can’t move it efficiently? And if we are in a period of volatility, how will restricted transportation options affect your merchandising strategies?

2. Panama Canal good for U.S. grain

Maria Sanchez of the Panama Canal Authority showed how the new Panama Canal will provide improved efficiency for U.S. grain shippers. Larger cargo ships, less delays and, by the way, grain accounts for about 35% of the traffic through the canal, she pointed out. Will we be ready to take advantage of that improvement? That’s the question – well, perhaps more of a statement – Rich Calhoun, President of Cargo Carriers posed to attendees.

3. U.S. infrastructure needs improving

While roads and bridges need work, Calhoun focused attention on our aging river-system lock. He said “when” not if a failure occurs, we’ll see transportation costs jump overnight. We won’t be able to leverage the value of the new canal the way we should.

Efficient transportation is a competitive advantage. In the face of what could be more yield and price volatility – or even if that doesn’t happen – wouldn’t it be nice to maintain transportation efficiencies to help alleviate risk? Support our industry associations and their efforts to keep this issue in front of budget-makers.

For more ofFeed & Grain's insights on the GEAPS Exchange education programs, read other articles andblogson oursiteand in theissue.

Mar 13, 2013

TheU.S. Commodity Futures Trading Commission (CFTC)is analyzing its proposed customer protections, i.e. segregated funds, after receiving a lot of criticism for its recent rulings. Customers and trade organizations have voiced concern over proposed protections they deem harmful to small to mid-sized futures commission merchants (FCM), which account for the bulk of agribusiness hedging activity.

Insurance, one form of protection for segregated funds, was excluded from the CFTC’s proposal. TheCommodity Customer Coalition (CCC), a non-profit organization formed in response to the bankruptcy of MF Global, headed by co-foundersJohn Roe, president ofRoe Capital Management Inc., and James Koutoulas, CEOTyphonCapital Management LLC, is advocating creation of insurance policies for futures customers and has been working on reform initiatives such as an account insurance mechanism and testing alternative forms of collateral segregation, i.e. margining positions though bank account rather than futures broker.

The CCC’s currently pushing a captive insurance company model. To test the validity of that model, the CCC needs to determine if there is a sufficient market interest for an insurance product; what customers seeking that insurance would be willing to pay; what kind of coverage they would be looking for; and collect account-level data in order to formulate the actuarial model to make sure it’s feasible to create an insurance product.

Roe explains: “We’re talking about a small market here — very few people have a commodity trading account so we’re talking about limited exposure here. It’s not possible for an insurance company to produce such policies so we’d have to create a new company. The survey will measure demand, the actuarial ability to produce the product — and then hopefully we’ll have the data we need to roll up our sleeves and let the actuaries go to work.”

The CCC is conducting two surveys to determine the feasibility of customer account insurance. One survey is tailored to the needs of public customers of commodity firms; the other, to National Futures Association’s (NFA) member or member firms.

If the market demand is there, the CCC will develop its own captive insurance company and begin offering insurance policies to commodity customers.

To take the Commodity Insurance Survey, clickhereif you are the customer of a commodity firm or clickhereif you are an NFA member or member firm.

The deadline is March 31.

Click on the link fror more information aboutCCC’s Insurance/Liquidity Concept.

Feb 25, 2013

GEAPS is, and rightfully so, proud of it’s 2013 Exchange in Louisville this week, pointing out that it’s the largest event ever. This is my 29th GEAPS. After 29 years we’re supposed to have earned and learned from great experiences, which gives us the right to provide a bit of perspective. Here’s mine:

First, the industry always represents and reflects progress. Perhaps whether we like it or not. The mergers and consolidations we’ve all seen — from farms to feed mills to co-ops — bring some pain. But it also brings progress, builds scale and often improves our opportunity to innovate, to add services and continue growing.

Second, highlighted by the attendance we’ve seen at many sessions here in Louisville, people appreciate ongoing training and education. In talking with a few of my long-time industry friends, we all like the constant emphasis on safety — on keeping our workers safe and healthy. Mark Aljets, speaking in the opening workshop on preventing catastrophic events made that point very well. He asked us to think about the impact in a small community if there is a loss-of-life incident at that town’s elevator. When you see someone at church, watch your kids growing up together, that sense of loss is heartrending. I know we’ll all keep safety training in the forefront.

Third, this market works together. We have two customers at Feed & Grain — our audience and our advertisers. Many of the advertisers I’ve worked with point out that some of their best ideas — where they make the most progress – started with customer input. Listening is a great skill. I think this industry does that.

最后,所有的这些年来,更多的,this industry represents fun. To meet again with people first met 29 years ago, to pick up conversations right where we left off, to get updates on business, on what they’re changing — and on kids and grandkids, is gratifying. I’m fortunate to be part of this industry. No wonder 29 years doesn’t feel like a long time!

Feb 1, 2013

Since I began my tenure asFeed & Grain’s editor,OSHA’s 2009 Letter of Interpretationregarding bin entry and sweep auger operation has remained a point of strife and confusion among our readers.

In the letter, a response to an insurance agent’s inquiry about the restrictions involved with employees working in a grain bin with an energized sweep auger, OSHA stated that it is in violation of theGrain Handling Standard (1910.272 (g) (1) (ii)to do so unless the employer eliminates all hazards posed by an unguarded sweep auger. Many believe the now infamous letter exposed a fundamental lack of understanding of how a sweep auger works — as well as how grain is handled —since the implications would make operation difficult, if not impossible, while remaining in compliance with the standard.

Politiciansand industry leaders, like theNational Grain and Feed Association (NGFA)OSHA,已经达到,但尽管他们efforts, the agency has failed to deliver concrete guidance for acceptable procedures or alternatives for in-bin energized sweep auger operation. However, more than three years later, as these cases are making their way to litigation, grain companies are finally getting a glimpse of what may be expected of them.

Recently, attorneys inEpstein Becker Green’s national OSHA practice group made headway when representing an Illinois grain handler, who despite having “employed a combination of administrative and engineering controls to ensure that no employee was ever within the zone of danger,” received a citation for allowing an employee to operate a sweep auger while in the grain bin.

The law firm contested the citation, and worked with an OSHA area director and regional administrator to develop a set of safety principles to satisfy the “equally effective means or methods” language of the grain standard.

Ultimately, OSHA withdrew the citation; and as part of the settlement agreement, the company will incorporate a set of “10 Sweep Auger Safety Principles,” which if satisfied, would allow an employee to work inside a grain bin with an energized sweep auger. It also developed and submitted for OSHA’s review and approval a “Sweep Auger Policy,” which outlines engineering and administrative controls used to ensure worker safety.

AttorneyEric Conn, head of OSHA practice with Epstein Becker Green, is confident this ruling may guide future policy, and commends the willingness of the agency to work with his client to find a reasonable solution.

While the outcome of this settlement is a step in the right direction, on a national level, an elevator who adheres to these principles is not guaranteed protection from a citation until this or another directive becomes final policy, warnsJess McCluer, NGFA’s director of safety and regulatory affairs.

The outcome of this case may not be the final word on the issue, but it does point to a potential resolution in the near future. To read a detailed account of the case as told by the attorneys involved, clickhere.

Jan 20, 2013

Both corn and soybean basis levels saw limited movement this week, as futures markets climbed on renewed concerns about short supplies. For the week, U.S. average corn and soybean basis were unchanged.

In the corn market, higher than expected feed use reported in last week’s USDA report cut the old-crop ending stocks forecast below trade estimates. But, continued lack of business in the export market and ethanol sector has kept basis levels stable to weaker. For the week, ethanol plants lowered their basis by 1-cent a bushel. On Wednesday, EIA showed ethanol production took a hit for the week as production averaged 784,000 bushels per day, the lowest level since the agency started releasing weekly data in June 2010. Grain Hedge still expects final corn use for ethanol to fall short of USDA’s current target of 4,500 MB as weak margins for ethanol producers should limit production.

For the soybean market, Gulf basis levels were off 9 cents a bushel which pushed river terminals down by 3 cents a bushel. Export sales continue to be on a torrid pace as this week’s total of 1.6 MMT was a marketing year high thanks to aggressive Chinese purchases. Domestically, soybean crushing margins have started to weaken but still remain exceptionally high compared to historical norms. For the week, soybean plants increased basis by nearly one-cent a bushel.

Jan 14, 2013

After almost a decade on the job, I can say with certainty, the last month of each year is a always a blur. Back-to-back issues, relentless deadlines, business travel, planning meetings — it all comes raining down in December. However, for me, it is also one of the most valuable times of the year because I find myself especially connected toFeed & Grainreaders, who, to be honest, make it all worthwhile.

Earlier this week I attended theNational Grain & Feed Association’s (NGFA)41st Annual Country Elevator Conference and Trade Show, held in Omaha, NE. Though very topically diverse, the conference sessions mirrored my December reality with a common theme: “Let the past guide you.”

Reading my coverage of the event, you may wonder how I came to this conclusion, but to me the connection was obvious. Reading between the lines during the presentations on financial reform, historic weather patterns, and quality control systems, dealing with unfavorable conditions — drought, volatility, the stresses of risk and uncertainty — the ability to cope, strategize and persevere comes from lessons learned from past experiences, either your own or by seeking guidance from those in the agribusiness community who have been there before. It’s that sense of community, the shared experiences, that get us through.

Working theFeed & Grainbooth at the trade show, I had the chance to speak to a number of our readers and took time to ask them about the information they hoped to glean from the sessions and bring back to their businesses; about the last year; the management challenges that keep them up at night; and what they would like to read about in the magazine, etc. It may seem like idle chatter, but this one-on-one time is invaluable to me, someone who sits as a spectator on the sidelines of a robust, complex and, oftentimes, nuanced industry.

Meanwhile, in my free time, I have been cold-calling subscribers at random in hopes of tracking the developing trends the magazine should cover in 2013. While this exercise is meant to gather industry insight, I am often floored by the participants’ willingness to share their knowledge and the sincerity I encounter when they elaborate on the challenges they face; to describe the decades of change that have come up around them; and to frankly discuss what they feel the future holds for their business and themselves.

To those of you who have taken the time to chat, you have my gratitude for the keen guidance you have provided; and on that note, to any of you who have considered sending in a story idea or sharing an experience you think may be helpful to one of your peers, please do not hesitate to reach out to me directly. After all, I’m here to serve you.

Here’s to the ag community! May we all learn and grow from the year to come.

Dec 21, 2012

Basis levels were up modestly this week with sluggish demand keeping cash markets mostly quiet. On average across the U.S., spot corn basis managed a one cent gain for the week while spot beans were up 2 cents.

In the corn market, ongoing demand struggles for exports and ethanol has kept basis levels mostly stable. While December is a time of usually increasing basis levels, for this year December has seen only a modest 2 cent improvement in US average basis. Weak export conditions have taken its toll on the Gulf where basis levels backed off 6 cents for the week. In the ethanol market, EIA’s weekly ethanol report showed production was down 2,000 barrels per day from last week and stocks of ethanol were sharply higher. Even with falling corn prices, margins continue to be weak for ethanol producers as prices for ethanol have fallen sharply as well. Since Dec 1, corn prices have come down 50 cents a bushel while ethanol prices have fallen 23 cents a gallon or 62 cents a bushel-equivalent, putting pressure on margins. Basis levels at ethanol plants did improve modestly this week, posting a 1.5 cent gain.

For soybeans, slower overall export demand along with news of Chinese export cancellations put pressure on futures markets, and helped slow basis growth. So far in December, US average soy basis is up 8 cents, but this week basis levels were up 2 cents. Soy processors were actually lower on the week as signs of less export business and significantly lower soymeal prices start to cut into crush margins. At the Gulf, export basis was off 8 cents.