Ag Notes

WILL - Ag Notes - April 11, 2014

PLEDGE NOW @ www.willag.org or (217) 244-9455

Our programming is supported in large part by people just like you. It means from time to time we do ask for your pledge of financial support. This is one of those times. If you can please, make your contribution right now. Just hit the red contribute button at the top of the page or visit www.willpledge.com. It really does count, but do be sure to list "AGRICULTURE" as the reason for your gift. Check the box that says your are responding because you benefit from agriculture

We're hopeful you might make a $200 annual pledge. However, any amount you find comfortable is helpful. Thank you for listening, reading, and pledging at www.willpledge.org today.

Dave Dickey & Todd Gleason

P.S. Commodity Week from last Friday was a "HUMDINGER"! It runs about twice as long as usual. You should take a listen.
Categories: Agriculture
Tags:

No tags were found.



WILL - Ag Notes - April 08, 2014

...for your road trip list.

Todd E. Gleason

I love out of the way places to travel and explore. A blacktop (a rural road) is one of my favorite things in all the world. They look the same just about everywhere I've ever been, but always hold a surprise or two. If you play your cards right you'll find something of interest and a great place to eat. Coming straight south from East Peoria, Illinois is a great road.

This one is wider than usual, and even has a name on the map, Springfield Road. There are many treats to see. If you are a "Lord of the Rings" fan you'll love the hobbit hole along the west side of the road. It sits there with a perfectly round door, just like those in the shire.

Once you drop down the mountain of a hill - for central Illinois - pass all the white fences, and mount the other side of the little valley, keep your eyes open for a pair of pines on the east side of the road (see the red pin on the map along Springfield Road). Hunkered down in those pines is a rock and plaque.

I think only those that have knelt upon the earth, filled their lungs with its sweet fragrance, and reached into it searching for a kernel of corn, can truly appreciate the rock and the acreage.

It is the birthplace of yellow dent corn. This is the place where a poor stand prompted Robert Reid to intra-seed a second open pollinated variety hoping for a good nick. It worked, and over the next forty years Reid and his son James diligently developed the new yellow dent corn variety. Eventually, it became the primary parent line behind nearly all modern corn hybrids.

If you farm, this is a sacred place to visit. 

Given that, I doubt it is a sacred place for the rest of the people in the vehicle. They'll need another reason. I would suggest the Harvest Cafe in Delavan. Bring your wallet, but do plan to have a magnificent meal in one of the most luxurious little spaces in rural route Illinois.

Click on any of the photos to show a lager version.

Categories: Agriculture

WILL - Ag Notes - April 03, 2014

Ethanol Price Spike Explained

EIA Press Release

APRIL 3, 2014

Rail congestion, cold weather raise ethanol spot prices

graph of ethanol and gasoline prices, as explained in the article text

Source: U.S. Energy Information Administration based on Oil Price Information Service (ethanol prices) and Thomson Reuters (RBOB prices).
Note: RBOB is reformulated blendstock for oxygenate blending gasoline, a motor gasoline blending component intended for blending oxygenates to produce finished reformulated gasoline.

 

Ethanol spot prices have increased steadily since early February. By late March, New York Harbor (NYH) spot ethanol prices exceeded prices for RBOB (the petroleum component of gasoline) by more than $1 per gallon. Ethanol spot prices in Chicago and Gulf Coast markets also rose above NYH RBOB prices.

The premium of New York Harbor over Chicago spot ethanol prices, which averaged 25 cents per gallon in January (close to the typical transportation costs of moving ethanol from production centers in the Midwest to terminals on the East Coast in recent years) widened to $1 per gallon in early March. Logistical constraints in and around ethanol production centers in the Midwest, mainly involving railroads on which approximately 70% of ethanol is shipped, appear to be a key factor driving recent prices.

Ethanol futures prices suggest that market participants expect the recent price increase to be short-lived as both rail system congestion improves and ethanol producers respond to the strong incentive that higher ethanol prices provide.

 
 

graph of railcar dwell times and train speeds, as explained in the article text

Source: U.S. Energy Information Administration, based on Railroad Performance Measures .

Note: Manifest trains combine cars carrying different products and are often broken up for delivery in a smaller number of cars. Railcar dwell time is the time that loaded railcars spend in a terminal awaiting movement.

 

Extremely cold temperatures this winter led to rail congestion in and out of midwestern terminals that delayed shipments to other regions and resulted in significant ethanol stock draws. Railcar dwell time, the time that loaded railcars spend in a terminal awaiting movement, at Burlington Northern Santa Fe Corporation’s Galesburg, Illinois terminal, which handles many ethanol cars from Iowa, nearly doubled in early 2014 to reach a peak of 60 hours in February and remain above year-ago levels.

While more than 70% of ethanol producers are equipped to load unit trains (trains running a single product), only about 35% of gasoline blending terminals are equipped to receive them. The average speed of manifest trains (trains running multiple products), which are often used to deliver ethanol to gasoline blending terminals that are not equipped to handle unit trains, decreased by 23%, from 22 miles per hour (mph) to 17 mph over the past 12 months.

Ethanol stocks were drawn down nationwide by nearly 2 million barrels (bbl) from mid-February to mid-March, partially recovering to 15.9 million bbl on March 28. This is more than 4 million bbl below typical March levels, which averaged more than 20 million bbl from 2011 through 2013. East Coast inventories were especially hard hit and on March 14 reached their lowest level (4.5 million bbl) since EIA began recording data in June 2010. For a more detailed analysis, see the April 2 edition of This Week in Petroleum.

Principal contributors: Arup Mallik, Sean Hill

Categories: Agriculture
Tags:

No tags were found.


WILL - Ag Notes - March 29, 2014

March 2014 USDA Hogs & Pigs

by Todd E. Gleason

USDA has released the March 2014 Quarterly Hogs & Pigs report. It, by most accounts, shows more inventory than the trade expected. However, the figures reported do show an impact from PED-V. This impact is, simply put, not as dramatic as the price rise has been in lean hog futures. The futures are still looking forward to what most expect to be a short market ready supply of hogs in April, May, June, and July. The following is excerpted from USDA's March 28, 2014 Quarterly Hogs & Pigs report.

United States Hog Inventory Down 3 Percent

United States inventory of all hogs and pigs on March 1, 2014 was 62.9 million head. This was down 3 percent from March 1, 2013, and down 5 percent from December 1, 2013.

Quarterly Hogs and Pigs Inventory – United States: March 1

Breeding inventory, at 5.85 million head, was up slightly from last year, and up 2 percent from the previous quarter. Market hog inventory, at 57.0 million head, was down 4 percent from last year, and down 5 percent from last quarter.

The December 2013-February 2014 pig crop, at 27.3 million head, was down 3 percent from 2013. Sows farrowing during this period totaled 2.87 million head, up 3 percent from 2013. The sows farrowed during this quarter represented 50 percent of the breeding herd. The average pigs saved per litter was 9.53 for the December-February period, compared to 10.08 last year. Pigs saved per litter by size of operation ranged from 7.70 for operations with 1-99 hogs and pigs to 9.60 for operations with more than 5,000 hogs and pigs.


Quarterly Litter Rate - United States

United States hog producers intend to have 2.88 million sows farrow during the March-May 2014 quarter, up 2 percent from the actual farrowings during the same period in 2013, but down 2 percent from 2012. Intended farrowings for June-August 2014, at 2.96 million sows, are up 2 percent from 2013, and up 1 percent from 2012.

The total number of hogs under contract owned by operations with over 5,000 head, but raised by contractees, accounted for 48 percent of the total United States hog inventory, up from 47 percent last year.

Categories: Agriculture

WILL - Ag Notes - March 25, 2014

Cost to Produce Corn and Soybeans in Illinois-2013

excerpt from the farmdocdaily website.

In 2013, the total of all economic costs per acre for growing corn in Illinois averaged $1,033 in the northern section, $966 in the central section for farmland with "high" soil ratings, $951 in the central section for farmland with "low" soil ratings, and $872 in the southern section.  Soybean costs per acre were $727, $715, $673 and $631, respectively (see Table 1).  Costs were lower in southern Illinois primarily because of lower land costs.  The total of all economic costs per bushel in the different sections of the state ranged from $4.90 to $5.20 for corn and from $12.32 to $12.88 for soybeans.  Variations in this cost were related to weather, yields, and land quality. 

Categories: Agriculture





Page 5 of 16 pages ‹ First  < 3 4 5 6 7 >  Last ›