Local Grains

Last Updated Feb 15, 2019 8:38 AM*
Corn Old Crop New Crop
Pro Coop, Terril - 1 -.30 -.50
Lakota Ethanol - GPRE, Superior -.28 -.43
CFE, Ocheyedan - Old 1 -.20 -.45
Stateline Co-op, Halfa -.20 -.43
Poet Bio Refining, Emmetsburg -.16 -.40
Max Yield, Mallard -.34 -.50
Max Yield, Fostoria -.35 -.50
Max Yield, Kerber -.19 -.42
Ag Partners, Fonda -.30 -.47
Ag Partners, Hartley -.22 -.47

Soybeans Old Crop New Crop
Pro Coop, Terril - 1 -.90 -.93
Meadowland Co-op, Lamberton,MN -.85 -.90
CHS, Fairmont -.53 -.70
CFE, Ocheyedan - Old 1 -.95 -.90
First Co-op, Laurens -.92 -.91
Max Yield, Fostoria -.93 -.95
Max Yield, Mallard -.94 -.94
Ag Partners, Emmetsburg -.90 -.95
Ag Partners, Hartley -.90 -.91
WFS Co-op, Dolliver -.79 -.90

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*This information was current as of this date. We believe it to be accurate but assume no responsibility.

Commodity Headlines

Farmers in Mato Grosso threaten to stop planting corn

February 6, 2019 10:00 AM

Source:  canalrural.uol.com

Productive sector is revolted with the return of the collection of the Fund of Transportation and Housing (Fethab); tax per ton will be approximately R $ 8,33

February 5, 2019 at 07:20 

By Pedro Silvestre, from Jaciara (MT)

There is a campaign so that the farmer of Mato Grosso do not plant corn in 2020 if the state government does not give up the collection of the Transportation and Housing Fund (Fethab). The initiative is headed by Antônio Galvan, president of the Mato Grosso State Soybean and Mine Producers Association (Aprosoja-MT).

As of February, for every ton of corn sold out of state, the farmer will have to pay about $ 8.33. The tax is taking sleep from producers, who see profit margins tighten more and more. "The cost of producing corn per hectare is 90 bags. Today, when we harvest well, we get between 100 and 120 bags per hectare. But often, it does not give that average in the whole area. One part of the crop gives you a profit and another can end up causing loss, "says producer Giovani Fritz, from Jaciara (MT).

Fritz complains that the government never acts in favor of the farmer and now rates the second crop corn, considered a risk crop. "At least 50% of the areas will have to be abandoned, because you plant the best," he says. He has reduced the area planted by 15% - this season, the cereal will occupy 3,000,000 hectares.

Revolted, the president of the Rural Union of Jaciara, Rogerio Berwanger, says that the government is putting all the weight on a single sector. "They want to sacrifice an industry because it is easier because it has less mobilization," he says. According to the leader, the union does not see the Fethab with good eyes neither in the short nor in the long term.

Berwanger recommends that the producer rethink what he will plant. "Suddenly leave some areas fallow, do a soil restructuring. Think again not to increase the area a lot and stay without pay, "he suggests.

Galvan provokes: "Why plant corn? If we leave the soil prepared for soy, we make the fifth straw, a better crop rotation, we will produce more soy in the next year. I want to know what the producer needs to grow corn? "He asks.

Chain Effect

The possibility of drastic reduction of corn area in Mato Grosso leaves in alert who depends on the grain in the domestic market, such as the swine chain.

According to the executive director of the Association of Pork Breeders of Mato Grosso (Acrimat), Custódio Rodrigues, the effects of the new tax on cereal has serious consequences for the sector, which requires approximately one million bags or 70 thousand tons per year .

"The costs of production are around R $ 2.90 to R $ 3.05, and we are selling pig to R $ 2.90 to R $ 3, practically equalizing. In the very near past, we sold swine at R $ 2.60 or R $ 2.55, much less than the expense, "explains Rodrigues.

The director of Acrimat explains that the sector is far from the centers to take the meat and also the corn production out of the state. "If we have to look for corn in Argentina, Paraguay or the states of the South, freight does not pay. The chance of pig farmers leaving the activity is quite large, "he says.

On Fethab's charge on corn, Rodrigues says it's a government mistake. "It was a shot in the foot. This will have a big impact not only on pig farming, but also on poultry, cattle raising and other activities that generate industrialization of products, which will impact the population itself, "he warns.

Who Holds Farm Debt?

January 24, 2019 12:33 PM

Source:  fb.org  Farm Bureau Federation

USDA’s 2018 Farm Sector Income Forecast projected farm sector debt at a record-high $409.5 billion, up 4.2 percent, or $16.4 billion, from 2017 levels. Real estate debt in 2018 was projected at a record $250.9 billion, up 5.4 percent or $12.8 billion. Non-real estate debt was also projected to be record-high at $158.6 billion, up 2.3 percent, or $3.6 billion, from prior-year levels.

There are a variety of creditors that lend into agricultural credit markets. These creditors include but are not limited to customer-owned Farm Credit institutions, commercial banks, life insurance companies, individuals, Farmer Mac and USDA’s Farm Service Agency. The largest creditors are the Farm Credit institutions and commercial banks, holding a combined $321 billion, or 81 percent, of agricultural debt in 2017.

At the end of 2017, data from USDA’s Economic Research Service revealed that commercial banks held a record $162 billion in farm-related debt. Second to commercial banks was the Farm Credit system, holding $159 billion in both real estate and non-real estate farm debt. The remaining creditors include individuals at $40 billion, life insurance companies at $15 billion, the Farm Service Agency at $10 billion and Farmer Mac at $6 billion. Figure 1 highlights the holders of farm-related debt.  

While Farm Credit is the second-largest creditor in agriculture, these customer-owned cooperatives are the largest creditors in farm real estate. At the end of 2017, the Farm Credit system held $108 billion in farm real estate debt, representing 45 percent of total real estate debt. Second to Farm Credit were commercial banks. At the end of 2017, commercial banks held $89 billion in farm real estate debt. Figure 2 highlights the holders of farm-related real estate debt.  

For non-real estate debt, the largest creditors in agriculture are commercial banks. At the end of 2017 commercial banks held nearly 50 percent of all non-real estate debt at a record $73 billion.  The Farm Credit system held $51 billion in non-real estate debt, representing 33 percent of all non-real estate farm debt. The third largest creditor were individuals, who held 17 percent of non-real estate debt totaling $26.5 billion. Figure 3 highlights the holders of farm-related non-real estate debt.  

Risk Exposure

Data from the Chicago and Kansas City Federal Reserves confirm that real estate debt carries a lower borrowing cost, i.e., interest rate. The lower interest rate reflects the relative risk of lending for real estate versus non-real estate needs.

Across the agricultural creditor landscape, the exposure to real estate and non-real estate debt varies. Individuals and others have the highest proportion of non-real estate debt at nearly 70 percent. Among the larger Farm Credit and commercial bank lenders, 68 percent of the debt held by Farm Credit is in real estate, while only 55 percent of the debt held by commercial banks is in real estate. Life insurance companies and Farmer Mac are fully invested in farm real estate debt, Figure 4.


In 2018, agriculture-related debt is expected to be a record $409.5 billion. In 2018 inflation-adjusted dollars, farm debt in 2018 is the highest since the 1980s. The largest creditors in agriculture are commercial banks, holding 41 percent of farm debt, 47 percent of non-real estate debt and 37 percent of real estate debt. Following commercial banks, the customer-owned Farm Credit institutions hold 40 percent of farm debt, 33 percent of non-real estate debt and 45 percent of real estate debt. These farm lenders support rural communities by making loans on real estate, farm production and rural infrastructure initiatives.

China has culled more than 900,000 pigs due to African swine fever

January 15, 2019 11:52 AM

Source:  Reuters.com

BEIJING (Reuters) - China has culled 916,000 pigs after around 100 outbreaks of African swine fever in the country, the agriculture ministry said on Tuesday, as the disease continues to spread to new regions and larger farms.

The disease has reached 24 provinces and regions since the first outbreak in August, roiling trade in the world’s top pork market and related sectors. China slaughtered almost 700 million pigs in 2017.

African swine fever does not harm humans but is deadly to pigs and there is no vaccine or cure.

The rare update by the Ministry of Agriculture and Rural Affairs on the size of the culling follows growing attention to the issue from other markets.

Taiwan’s President Tsai Ing-wen urged Beijing last month to “not conceal” information about the disease, after a dead pig was found on a beach on Taiwan’s Kinmen island, which is about 10 km (6 miles) from the Chinese coastal city of Xiamen. The pig was later found to have the African swine fever virus.

“China has always followed the principles of ‘being timely, open and transparent’ when reporting the cases,” said Guang Defu, a ministry spokesman, in the statement on its website.

In addition to the pigs culled on the infected farms, many more have been slaughtered by farmers seeking to exit the industry because of the impact the disease is having on prices and trade, said Pan Chenjun, a senior analyst at Rabobank.

Prices in some parts of the country have been sitting at loss-making levels for months, following restrictions on transport implemented after disease outbreaks.

“The numbers culled is just a small part,” said Pan.

Liquidation by small farmers and the slow restocking and expansion of larger farms could reduce China’s pig herd by about 20 percent in 2019, she said.

The effect of the swine fever outbreak is spilling over to animal feed markets. China’s soymeal futures plunged almost 3 percent on Monday, following a fresh outbreak on a large breeding farm announced on Saturday.