2011 Fall Grain Update

• Published On:11/4/2011
• Author:Jeff Spence
• Categories:Grain, Admin

With harvest just around the corner we are emptying our bins and silos to create space for the new crop, including space in our new Madelia storage facility. The crop in our trade area seems to be consistent with the national outlook; a smaller crop than last year because of the overwhelming heat and lack of moisture. I expect to see continued volatility in the markets as the USDA tries to figure out if we need to raise the price of commodities to create rationing. We are seeing this situation currently with poultry prices in the red, wheat being substituted for corn and flocks reduced. Cattle numbers are also down for various reasons and it will be some time before we begin to see those numbers rise. Ethanol and hogs have been doing well overall, but exports are beginning to slow down. It will be important to watch our rationing, as over rationing could mean prices falling into summer 2012.

Please be sure to get a full night’s rest before putting in a full day’s work! I wish you a safe harvest season!

Notes about Madelia:

• The cement has been poured and we are finishing installing equipment in the new storage facility.
• New software installation for the dual scale system.
• We will issue tags for each truck the first time through the scale – please assist our staff in making sure that your truck has been recorded with the correct information.