Thursday, February 17, 2011
Greetings from Reynolds United Co-op!
We have had a great February up to this point. It’s amazing to see how much the snow has melted. You can actually see on-coming cars now when you get to an intersection in Fargo!
On e of the good things about the mild weather, farmers start hauling grain. Farmers have been busy little bees the past couple of weeks getting grain into RUC. It’s been fun.
My Vikings year ended about the worst way possible…………….. The Green Bay Packers winning the Super Bowl. Next year?
It’s still up in the air on whether or not valley beet farmers will be allowed to plant Round Up Ready sugar beets or resort to planting conventional varieties. Either way, Reynolds United Co-op will be your ONE STOP sugarbeet center!
Last week, USDA came out with their stocks report. US Corn ending stocks are at 675 million bushels, well below the pre-report expectation of nearly 730 million. Soybean ending stocks are projected at 140 million bushels. US wheat ending stocks are estimated at 818 million bushels. The soybean and wheat figures are unchanged from January. Corn ending stocks were the big surprise. At a five percent stocks-to-use ratio, corn stocks are at the lowest level in 15 years. Now you’re talking about looking back to 1995/1996 in a comparison year where we saw this type of tight end stocks and strong usage. The USDA also raised ethanol demand by 50 million bushels and it appears that there’s really no slowdown in ethanol usage at all. The market going forward will need to slow down ethanol usage and to buy some corn acres.
John Deere came out today with their acreage estimates. Yes, John Deere! They estimate farmers will plant 92 million acres of corn, 79 million acres of soybeans & 55.50 million acres of wheat. This compares to USDA’s 92 million acres of corn, 78 ma of soybeans & 57 million acres of wheat. They have farmers planting 1.8 million less acres of spring wheat/durum. What are we planting on these acres?
No markets, banks or post office on Monday. So………………… no RUC. We will be closed on Monday with a promise we will give this day back to our customers this spring! Markets open up again Monday night @ 6:00 PM.
The weather seems to be a concern for the commodities markets. The winter wheat area has little or no snow cover and cold temps. Winterkill? I think we are on the crop’s 4th life (out of 9).
Early guesstimates are our for the season long weather forecasts. For the upper Midwest we look to have a cool wet spring (and late) followed by a cooler & dry early summer and ending with a warmer than normal & dry late summer/fall.
China is still extremely dry. That’s good for the US exports. China, keep on buying! South America is wet but OK and Australia is still very wet.
In the past few months, the grain prices have risen significantly. I know it’s been hard to haul in your contracted grain only to look up @ the board and see the prices much higher. I recently read on article and I will pull a few bits from it.
Remember, you sold at a profit. You sold the grain @ a price you never imagined last spring when you planted that crop. There will be years in the future where you will sell at the high and still lose money. Take this crop to bank. Secondly, you didn’t lose money on what you sold. You never had it. You miss opportunities every day. Buying land 10 year ago, stocks, etc. We miss opportunities! Don’t waste your time focusing on missed opportunities in the past. The past is always clear, but focus on the future. Sell more old crop, sell some new crop. The time is now. Don’t miss a chance to sell at a profit.
Reynolds United Co-op is busy cleaning wheat seed. Just another reminder, if you need seed cleaned, please give Gary a call and schedule a time to have your seed cleaned.
Here’s ANOTHER reminder! Reynolds United Co-op’s Annual meeting is Tuesday, March 15th @ 10:00 AM with lunch following. Reynolds United Co-op had a very successful year and we would like to share with you what happened at RUC last year, and look ahead into 2011. Oh by the way, if you did business with us last year, there will be a check waiting for you, too! Please plan on attending. I’ll make it worthwhile!
Crude oil is hanging around $90. Gas is $3.17 in Reynolds.
High School Boys & Girls Basketball tournaments are starting. It’s a fun time of year!
Our cash grain prices continue to have a roller coaster ride. For the week wheat is down $.37 at $9.46. New Crop wheat is $9.13, down $.31 this week. Corn is up $.11 @ 6.33. New Crop corn is $5.25, down $.03. Soybeans closed @ $12.95, down $.01 for the week. New crop beanies are @ $12.64, down $.06
In closing, in honor of the Green Bay Packers winning the Super Bowl, I’m going to give you a few quotes from the famous coach of the Packers, Vince Lombardi, who is very well known for his ability to motivate his players. While his quotes were for his players, they can be applied to everyday life:
- If it doesn't matter who wins or loses, then why do they keep score?
- It is time for us all to stand and cheer for the doer, the achiever - the one who recognizes the challenges and does something about it.
- Life's battles don't always go to the stronger or faster man. But sooner or later the man who wins, is the man who thinks he can.
- Show me a good loser, and I'll show you a loser.
- Winners never quit and quitters never win.
- Winning is not everything, but wanting to win is.
- The greatest accomplishment is in never falling, but in rising again after you fall.
- Winning isn't everything, it's the only thing.
Have a great weekend!
If God brings you to it he'll bring you through it.............