November 2014
Country Connections
CUSTOMER NEWSLETTER
There’s Value in Our Good Name
Connell Grain Growers is now CHS
Connell Grain. It’s a small difference
that represents something more
substantial: a name change to remind
you that we’re not in this alone.
By highlighting our connection to CHS
Inc. (the only farm cooperative on the
Fortune 100 list), we’re acknowledging
the strong financial foundation
supporting every step your local
cooperative takes. Thanks to that bigger
business unit, you can have confidence
in your transactions with CHS Connell
Grain. Farmer-owned CHS is why you
never need to worry about losing your
investment in the co-op; it’s also how
you know you’re on track for dividends
based on the business you do with us.
You already know all of this if you’ve
been a customer and shareholder during
the 14 years since this cooperative
aligned itself with CHS. To you, the new
signage and the name on the masthead
of this newsletter are visible reminders
of our commitment to your success.
By Scott Althoff, General Manager
[email protected]
Those who’ve only recently made a
connection with us will come to value
our knowledgeable staff and updated
grain-receiving locations, too.
Thank you for working with CHS
Connell Grain. We value your business
during this year’s wheat and corn
harvest seasons and hope we served
you well. Our team will continue to
work for you through the coming
months, of course. On page 3 you can
see Chad Dinkins’s report on some of
the top numbers in our seed plots. And
Camron Bishop shares recent insights
to the situation in the corn and wheat
markets on page 2. Chris Guess brings
you up to date on new construction
and other facilities improvements
that stand as clear evidence of the
CHS commitment to growers in the
Columbia Basin.
Be sure to work safely through the
remainder of your fieldwork season
so you and your family can enjoy
the holidays ahead. Best wishes for
success in your farming operation as
we all look to 2015!
IN THIS ISSUE: A year in and our Bruce location is setting delivery records. See page 4.
chsconnellgg.com
A Big Crop Can’t Find Transportation
By Camron Bishop, Senior Grain Merchandiser
[email protected]
Probably the two biggest factors impacting grain markets this fall are crop size and
rail challenges. Everybody from auto makers to members of Congress complain about
transportation backlogs and the lack of available railcars.
Crude oil shipments from the
burgeoning North Dakota
oil fields are one frequently
cited cause. There’s a profit
advantage for rail companies to
direct more cars to the booming
Bakken area, but cars are scarce
elsewhere. At the same time,
the owners of a pipeline that
previously carried propane across North Dakota to the lower
Midwest also saw the economic advantage of focusing on the
northern oil fields. With deliveries no longer available through
the Cochin Pipeline, energy companies turned to rail deliveries
for propane.
As a result of the increased pressure, rail freight costs
skyrocketed. The Midwest rail issue has caused our basis to be
very high when compared to years past. It’s keeping our corn
prices higher going forward, too.
While marketers were talking about trains, you were busy
harvesting a good crop this year. Corn came into our 10
locations really dry and with high test weights. The USDA
believes we’re sitting on a very large U.S. crop this year,
though FSA pegs total bushels quite a bit lower. Until those
two numbers reconcile, grain marketers won’t start trading.
When traders do make a move, your best tactic could be
selling a little here and there. I’m afraid it’s a bleak outlook that
2
will require either a crop problem to coax prices higher…or a
change in the way China views our GMO corn. That situation
hasn’t improved since the Chinese decided not to buy U.S.
corn last year.
Your red wheat crop shines
Red spring wheat is currently catching a little price bump
through basis. You delivered a crop with solid protein levels in
a market offering high protein premiums.
The other wheat growing areas had a lot of rain during
harvest, so their crop lost color and protein. That gave you an
opportunity to pick up better prices; it’s an advantage you’ll
maintain.
As for 2014 winter wheat, yields locally were 20% to 40%
down, depending on where you farm. You have every right to
be a little nervous going into the winter, since quite a bit of
your wheat went in with too little moisture.
Exports remain steady. That said, there is still plenty of wheat
in the U.S. and plenty available worldwide. The decreasing
value of the dollar should help our prices eventually, allowing
U.S. exports to become more competitive as the dollar drops.
A crop problem somewhere would be the likely event to spur
wheat prices. Until then, if you see a market rally, you should
sell some wheat.
Experience the Power of Extensive Plot Info
By Chad Dinkins, Seed Sales Associate
[email protected]
We wouldn’t expect you
to choose seed without
adequate research. That’s
why Austin Davis and I are
always ready to reach out
for data from 40 different
seed plots. That’s a big
library at hand when you’re
ready to review your
options.
your best options, call the Connell office and ask for
either Austin or me.
Call soon…
You’ll capture a real advantage if you order and prepay
seed corn before Dec. 31. We offer a 6% prepay discount
from now until year’s end!
All test results we’ll access for you are local, gathered
from plots throughout central Washington. When we
call up specific hybrids or varieties, you’ll see actual
Columbia Basin performance. That should give you a
better idea which choices fit your operation.
Our product array includes CROPLAN Genetics® and
DeKalb® brand products suited to northern corn growing
areas. (You can read the benefits of a couple of my
current favorite hybrids at the bottom of this page.) We
also offer a variety of alfalfa seed alternatives.
Results of spring wheat trials are now available, as well,
and we’re ready to share. Once you review the data,
you’ll want to put in a hold for your seed for spring.
To investigate a wealth of seed information and discuss
THESE TWO CORN HYBRIDS CAUGHT
CHAD DINKINS’S EYE
DEKALB® 62-08
• High-yielding silage variety.
• Medium-height with a medium ear
placement.
• Great stalk and root strength.
Once you go to the effort of reviewing plot data
and selecting the best seed for your fields, it makes
sense not to let go of your advantage. If you want
to guarantee your order of specific varieties—order
early. By getting your preferences on record as soon
as possible next spring, you’ll be more likely to pick
up what you ordered. We’re in competition with corn
growers from other parts of the nation who may want
the same seed.
On the alfalfa side of the equation, if you intend to
spring plant, don’t neglect to get your order in early.
Those varieties are in really short supply this year. In
fact, both alfalfa and Timothy stocks are harder to
capture because recent hard winters in the growing
areas have hurt seed stock. So whether you’re putting
down a first crop or touching up an existing stand, make
contact with us right away.
CROPLAN® GENETICS 4099
• This 99-day number dries down
quickly.
HERE’S A STANDOUT SPRING DARK
NORTHERN SPRING WHEAT VARIETY
SY STEELHEAD
• Plan on medium ear placement on
strong, medium stalks.
• You’ll find this variety adaptable in
low rainfall areas.
• This high yielder is proving a versatile
choice.
• It’s known for high protein content.
• Expect above-average yields from
medium-height plants.
3
PO Box 220
433 North Columbia Avenue
Connell, WA 99326
New Bruce Facility Delivers on Promised Speed
By Chris Guess, Grain Operations Manager
[email protected]
borrowing power provides financial
support for this kind of major
improvement. As a member of this
network of cooperatives, we count
ourselves fortunate: local decisionmaking is backed by CHS monetary
muscle.
I sometimes say grain operations
doesn’t have the most exciting story
to tell. After all, we’re the day-to-day
team at CHS Connell Grain. Yet when
we launch a new grain-receiving site
totally from scratch, grain operations
becomes a lot more interesting.
Our new Bruce facility opened for
deliveries a year ago, so it’s time to
provide a performance report. I can
tell you the location has been a real
success, and feedback from growers
who deliver there has been nothing
but positive.
It’s a high-speed facility accepting
60-thousand bushels per hour with
a 6,000-bushel-per-hour drying
speed. Total capacity is 2.1 million
bushels on what’s called a “greenfield
site,” everything new on previously
undeveloped land. The facility went
up in 10 months.
The initial decision made by our local
co-op board of directors launched
the project and sent it on for approval
by the CHS Inc. corporate board. That
was an essential step because CHS
Our new Bruce facility opened July
18, 2013, giving us time to prepare
for the first harvest. This year we
were completely confident in our
operations, knowing this facility
whittled what was once a 45-minute
to one-hour harvest lineup down to
six minutes. Six minutes in and out is
all it takes to deliver at Bruce today.
Throughout our CHS Connell Grain
system, we have made significant
facilities investments. In Moses Lake
we sped up inflows by removing a
wooden crib elevator built in the
1940s. We also made substantial
improvements to receiving speed at
our Quincy location.
The common theme of all CHS
Connell Grain operations is: How will
we help our co-op owners grow?
That’s what we all wake up thinking.
Farms grow larger while seed
genetics boost yields. You harvest
faster with bigger equipment and
deliver with impressive speed. From
our point of view, a high-capacity
operation like the one we built
in Bruce is a contribution to your
increasing efficiency.