2014/2015 Corn and Soybean Storage and Discounts: Patrons: Effective September 1, 2014, UFC will implement the new corn and soybean charges and discounts that accompany this letter. In the past, UFC and its management with the consent of the board of directors would set a corn moisture discount per ½ pt of moisture, (last year 5 cents per 1/2pt or 10 cents per point). UFC has, with management’s recommendation and the board of director’s consent, decided to change from setting a pre-harvest discount on gross bushels to the new Dry/Shrink charges that are becoming more common in today’s volatile market place. Under the new system, wet corn bushels will be assessed a drying charge per 1 pt of moisture of 3.0 cents and wet bushels will be shrunk down to dry bushels at a rate of 1.4% shrink per 1pt of moisture. Drying and hauling charges will be based off of wet bushels, while storage/DP charges will be applied to dry bushels. How will the new corn moisture discounts compare to years past: very similar to both the elevator and producer.
Example of the new discount and old one: Producer hauls in 500 bu of 18% corn to be Sold at Fall price of $3.35
New Discount: Dry/Shrink 3 cents/pt Old Discount: 10 cents/pt moisture Drying charge of 9?/wet bu (3? x 3pts) Moisture discount of 30?/bu Shrink of 4.2% of bushels (1.4% x 3pts) = 21bu Payment: Payment: 479 dry bu x $3.35 = $1,604.65 500bu x $3.35 = $1,675 Drying Charge -$45.00 Moisture Disc -$150 Total Check amount: $1,559.65 Total Check amount: $1,525.00
As you can see in the example above, the total economic impact of the new moisture discount program will be negligible to both the producer and elevator. For those of you that grow NON-GMO corn, premiums will be paid on dry bushels. Again, Drying and Hauling charges will be charged on wet bushels as that is truly what is being handled, where storage/DP charges will be figured on dry bushels for the same reason. The new corn moisture Dry/Shrink will still provide the ability to average moisture out of the bin as grain that averages dry enough, will not be assessed the corresponding drying charge. As typical for years past, corn for sale will be discounted or dry/shrink down to 15.0% moisture, and corn for storage/DP will go down to 14.0% moisture. For our patrons, the biggest change will be that of dry bushels being used for payment vs gross (wet bushels) in the past. Corn and Soybean Storage/Dp charges will be 18? this year for 90 days to reflect the stronger demand for storage with record corn and soybean crops being projected. Grain space will be short throughout much of the Midwest this fall and cash carrying charges continue to inch wider. We all look forward to serving you this fall and wish everyone a SAFE and bountiful harvest.
All spot grain from elevator open to close will be priced at the 2:00 p.m. closing bid price.
Contracts will be written for any loads you want priced at any time during the day.
Grain hauled on day when CBOT is closed will be priced on previous closing bid.
Saturday/Sunday prices will be Friday’s closing bid.
UFC had its regularly scheduled board meeting Tuesday September 16, 2014 at Ursa. Joe Zumwalt (former President) and Alan Donley (former Vice President) both retired from the board. We have two new board members being Charles Krueger from Kahoka, MO and Eric Cassens from Camp Point, IL. Nominations were held at the beginning of this meeting with the following results: Scott Wray – President, Ted Knorr – Vice President, Scott Rutledge – Secretary and Kevin Roskamp – Treasurer. When you see these board members (retired and present) please take a moment to thank them for their service. (UFC has a seven member board: Scott Wray, Ted Knorr, Scott Rutledge, Kevin Roskamp, Roger Sutter, Charles Krueger and Eric Cassens)
A few rain showers are in store for southwestern Missouri Wednesday. Otherwise, dry conditions will cover the primary U.S. and Canadian Prairies crop regions. This combination favors row crop maturation along with row crop harvest in the eastern and southern Midwest, and wheat harvest in the northern crop areas, as well as winter wheat seeding in the Southern Plains. Rains from tropical storm Odile in Arizona and New Mexico have the potential to move into the southwestern Plains later this week. » More DTN Weather Commentary
Chaddock has worked with producers and merchandisers across the state to make it easy to support Chaddock by donating a portion of their grain or livestock harvest to the capital campaign. Our greatest need is funding for a new school. The demand for Chaddock's unique services is increasing, and we have literally outgrown our current school. We've launched a $12 million building project that will allow us to increase the number of young people we serve. The goal is to have children walking into the new school for their first day of class in August 2016.
This is a unique opportunity to make a real difference in the lives of innocent children for decades to come. Consider donating a portion of your grain or livestock harvest to our capital campaign. http://www.chaddockagriculturalpartnership.org/