LeRoy Cooperative Assoc. - aghost.net · 2009-09-08 · tires, such as, Hankook, Titan, Maxxis and...
Transcript of LeRoy Cooperative Assoc. - aghost.net · 2009-09-08 · tires, such as, Hankook, Titan, Maxxis and...
As we approach fall harvest, we are busy getting our bins empty for what appears to be a good
fall harvest. Transportation out at harvest has always been a challenge. The time to move corn out
to make more bean room will be less this year because of the later planted corn. We will make
every effort to keep grain moving out.
For us to ship grain, we must own the grain or have title to it. We get ownership by you selling
cash grain or by you delivering on new crop contracts. We also offer other programs to give us title
to corn and soybeans and still allows you the opportunity to sell later.
For corn, we will offer a Basis Contract and Minimum Price Contract. The next two articles will
detail them.
For soybeans, we will offer a Price Later Contract. An article to detail this program is in this
newsletter.
Feed milling and delivery is an important part of our business. For those who use our Feed Mill
services, we will offer Feed Bank storage based on your past history. OPEN STORAGE:
We will continue to offer Open Storage on corn, soybeans and milo. When grain stays in open
storage past June the next year, it limits us to be able to empty our bins for the next fall harvest.
Therefore it is necessary for us to institute a new policy for fall grains. The new policy is:
Open Storage corn, milo and soybeans will convert to Price Later Contracts on June 1 the
following year. Price Later allows you the opportunity
to price your grain on your terms. Price Later gives
the title to the grain to the Coop so we can clean our
bins for the next harvest. Price Later fees will be 4¢/
bushel/month. On May 1, you will receive a letter as a
reminder that you have open storage grain and the grain
will convert to Price Later on June 1. This is the only
Grain Policy change necessary for this fall. If you have
any questions, please call.
Fall Harvest Update
Corn Alternatives: Minimum Price Contracts By: Judy Bentley, Grain Merchandiser
An alternative to a Force Sale or Basis Only Contract, would be a Minimum Price Contract.
This ties your New Crop Contract to a call option. For example, using today’s price on a July
option…
Dec Corn CBOT Today ................ $3.29
Less Basis ................................................ -.44
New Crop Contract Price ............ $ 2.85
3.50 July Call Option Cost ................. -.50
Net Price Guaranteed .................... $ 2.35
However, if you think corn is going to go down more, you can price your new crop contract to-
day and establish your option cost at a later date. (The cost would have to be established before
payment is made.) Fifty cents sounds like a lot of money but remember this allows you to stay in
the market until around June 15th and you get your money up front.
Open Storage grain: Storage costs from Oct 15 to June 15th is 32¢ (8 month @ 4¢/bu). Operat-
ing interest for 8 months is 16¢ (2¢/month @ 8%). Interest and storage total 48¢/bu. In contrast
to the minimum price contract, storage grain has no guaranteed floor price.
There are other examples using March & May options. The costs are less but so is the time
frame to complete the transaction.
*Minimum price contracts will have to be done in 5,000 bushel increments.
August 2009 www.leroycoop.coop
LeRoy Cooperative Assoc.
OPEN STORAGE RATES
Grain Per Month 3-Month Minimum
Corn 4¢ 12¢
Milo 4¢ 12¢
Beans 5¢ 15¢
By: Lyle Fischer, General Manager
Inside this issue:
Basis Contract 2
Price Later for
Soybeans
2
Cattle Supplements 2
Agronomy Notes 3
Fall Fertilizer &
Chemicals
3
New Faces 4
50th Anniversary 4
Interstate Battery 4
Grain Bins 5
Tire Shop/Seed
Wheat
6
PO Box 248
505 E. 6th
LeRoy, KS 66857
620-964-2225
888-964-2225
Westphalia Office
610 Warne Street
Westphalia, KS 66093
785-489-2521
877-489-2521
Gridley Office
312 Main Street
Gridley, KS 66852
620-836-2860
877-836-2860
Last year, we offered a Basis Contract on Corn and will again this year. It will give us title to the corn and give you some extra time to price it. We will lock in a basis under December CBOT and you will have until November 20, 2009, to price your corn. Pricing must take place during Board of Trade trading hours. There will be no storage or other fees with the Basis Contracts. Keep in mind there is no guarantee the December CBOT corn price will improve compared to a harvest price. Quantities on the Corn Basis Contract could be limited.
Basis Contract
Page 2 LeRoy Cooperative Assoc.
For soybeans, we must also have title to the grain to ship it. We will offer Price Later on soy-beans this fall. The Price Later fee will be .04 cents per month with no minimum storage fee. You will have as much time as you wish to price your soybeans. Please feel free to ask any ques-tions you might have.
Price Later for Soybeans
Price Later Fees Beans 4¢ per month
No Minimum Fees
Cattle Supplements
Quality Liquid Feeds
QLF Super 40 has been an excellent lick tank feed
for supplementing cattle on pastures and a protein
source for wintering cows. This fall we are introduc-
ing another QLF lick tank feed for pasture supple-
mentation. Pasture Performance 35 might help with
some consumption issues compared to the Super
40. The price portion will be about $40.00/ton less
than Super 40. Supplementing with Super 40 or Pas-
ture Performance 35 and free choice minerals is the
convenient and economic way to meet your cow
herd’s needs. Now is the time to start filling tanks to
keep your cows body condition good going into fall
and winter.
Rangeland Tub Special!!!
*********** $10/Ton Discount on 4
Tubs $20/Ton Discount on 8
Tubs
Rangeland tubs are another convenient way to
supplement cattle on pasture. Rangeland tubs
are low moisture, cooked molasses supple-
ments in a biodegradable fiber or plastic
containers. It is consumed by licking only, as
the surface softens by moisture in the air and
animal saliva. Tubs deliver the protein and
energy your cattle need. We stock all natural
17% and a 30-13 tub.
Rangeland Tubs
The Lick tank advantage:
Ultimate convenience
Several small meals across the
day
Opportunity for less dominant
animals to come to the feed
unchallenged
Virtually no waste
Intake can change as conditions
dictate.
By: Judy Bentley, Grain Merchandiser
By: Judy Bentley, Grain Merchandiser
Page 5 www.leroycoop.coop
Grain storage and handling grain at harvest with fast elevator legs is one of our major assets. The Board has realized that as more corn acres are planted, the need for more grain space has increased. This summer the Board ap-proved adding another concrete bin in LeRoy. The bin is located north of the other three concrete bins. The bin is 60’ diameter and 140’ tall. The capacity is 340,000 bushels. Plans are to have it ready by the middle of Septem-ber. Since 2001, the Coop has added 1,130,000 bushels of stor-age capacity including this new bin. With this addition, our total storage capacity will be 2.3 mil-lion bushels.
Grain Bins
2001-Gridley 40,000 bu bin
2001-Added 3rd tank 250,000 bu.
Concrete @ LeRoy
2003-2-50,000 bu bins & Elevator Leg,
Gridley
2005-2-200,000 bu bins & Elevator Leg,
Westphalia
2009-New Concrete
Silo Construction @
LeRoy-340,000 bu.
We’re on the Web
www.leroycoop.coop
LeRoy Cooperative Assn.
P O Box 248 - 505 6th St.
LeRoy, KS 66857
Temp-Return Service Requested
LeRoy Cooperative Assoc. Page 6
It’s harvest and school time again. This is the time to check your vehicles over
to see if they need tires and maintenance to get them ready. We have a new tire alignment machine at the LeRoy Tire Shop location. This
machine is able to handle larger vehicles. Call us today to schedule your alignment,
oil and lube service, brake service, shocks and struts. We also carry new and used
tires, such as, Hankook, Titan, Maxxis and other brands are available to order.
LeRoy Tire Shop: 888-964-2288 Westphalia Tire Shop: 785-489-2216
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