CHS reports net income of $229.3 million for the 3rd quarter of fiscal 2018

CHS income
CHS Inc., the nation’s leading farmer-owned cooperative and a global energy, grains and foods company, reported net income on July 11, 2018, of $229.3 million for the third quarter of its 2018 fiscal year (three-month period ended May 31, 2018), compared to a net loss of $45.2 million for the same time period a year ago.

Consolidated revenues for the third quarter of fiscal 2018 were $9.0 billion, up from $8.6 billion for the third quarter of fiscal 2017. Pretax income was $289.4 million for the third quarter of fiscal 2018, compared to a loss of $209.2 million for the same period the prior fiscal year.

“Thanks to the hard work of many throughout CHS, we’ve made great strides this year in strengthening relationships, optimizing operations and improving results from our core businesses,” said CHS President and CEO Jay Debertin. “The steps we’ve taken will better position us to navigate the inevitable cycles in agriculture and energy. I am proud of our team and their dedication and commitment to operating with excellence.” (more…)

The difference between drift and volatilization

herbicide application
Getting the most out of an herbicide application not only includes maximizing efficacy, but also minimizing damage caused by herbicides. Being aware of what can go wrong and how to avoid it can lead to effective, on-target herbicide applications and help growers have a successful growing season – without the distress and loss caused by applications gone awry.

Two threats to herbicide applications are drift and volatilization. While they may seem similar, they are quite unique and require different attention to ensure that neither occur. (more…)

CHS New Horizons supports hometown community safety initiative

Photo L to R: Scott Libbesmeier, Tanner Lehman, Deb Stoneburg (CHS New Horizons), and Todd Vipond (Fire Chief)

 

Herman, MN – This spring, CHS New Horizons announced a $5,000 grant to Herman Fire Department in Herman, MN. The funds supported the purchase of a Quick Rescue truck, which will be used to assist responders during rescue calls.

“We’re proud to support this project as a way to strengthen the community and see it thrive,” says Jerry Kramer, CHS New Horizons General Manager. “Projects like this are essential to enriching our rural area and the people who live here.”

The funds contributed by CHS New Horizons were matched dollar for dollar by a CHS Seeds for Stewardship grant, which helps cooperatives grow their impact locally. Together, $5,000 will benefit Herman Fire Department.

“Cooperatives were founded on the principles of education, community involvement and cooperation,” says Kramer. “By combining resources, we are providing double the impact to our area and demonstrating the cooperative spirit.”

Providing products and services in the agronomy, energy, and grain markets with locations in the communities of Chokio, Donnelly, Fergus Falls, Herman, Morris & Underwood, CHS New Horizons is here to supply for your needs. For more on what’s new, visit us at www.chsnewhorizons.com, like us on Facebook, and follow us on Twitter.

June 20th Scouting Report

Curious what’s happening throughout our territory?  Members of our agronomy team weigh in below with what they’re seeing in fields so far this season.

 

Aaron Helbling Scouting Report
CHS New Horizons in French

Corn: A lot of corn fields are growing really fast, and early sprays have been keeping most fields really clean. Keep checking on fields as they get close to canopy, remembering that chemical options start to get fewer and fewer as your corn grows. We are also getting to the stages where tissue testing will show fertilizer needs.

Soybeans: Pre’s worked great this year but are breaking down fast. Throwing in some residual for late flushing weeds such as waterhemp on these passes should get you to canopy really clean. Be aware of dicamba deadlines, and have a backup plan ready. With a lot of moisture and beans getting close to flowering, remember last year’s issues with white mold and ask about fungicide timings.

Wheat: Wheat is approaching heading fast, we have seen great results with fungicide treatment at heading (especially in moist conditions).

Alfalfa: Seeing more alfalfa weevil this year, after first cutting is a prime time to be watching for weevils.

 

Sam Westby Scouting Report
CHS New Horizons in Chokio

In our area, corn is sitting around V5-V6, and spraying is going well so far.  Soybeans are all over the board as far as stages – averages are around V3-V4, and they are looking good.  The eastern part of our territory is looking a bit too wet, and around Chokio things are okay but still a little on the wet side.  looking forward, continue monitoring weeds and get them sprayed as needed, especially as things begin to dry up in the next week.

 

James Svendsgaard Scouting Report
CHS New Horizons in Fergus East

Our area is wet, with 2-3” of rain over the weekend.  On the plus side, we have enough moisture in the ground with a good number of GDUs already, so it’s a ‘good problem’ to have as the crops are growing well.  Beans are starting to get weedy, so now is the time to get them sprayed. Corn has been growing extremely fast and a lot is already canopied.  With this in mind, we are in our last push for corn topdressing.  Wheat is looking very good – the majority is finished with topdressing.  With wheat, think about fungicide as they move into heading to help prevent dockage at elevators in the fall.

June 8th Scouting Report

 

Curious what’s happening throughout our territory?  Members of our agronomy team weigh in below with what they’re seeing in fields so far this season.

Sam Westby Scouting Report
CHS New Horizons in Chokio

     Corn: Corn is anywhere from V3-V5 stage around here. We are starting to see more and more weeds poking through in fields that had pre-emergence chemistry applied. (more…)

Soil Whisperers

White Hall, Ill., farmer Maria Cox, left, and her crop advisor Kyle Lake were named 2018 4R Advocates by The Fertilizer Institute. Photo by Erin Williams, CHS.

Adapted from C magazine article by Peg Zenk

READ MORE: Find the entire C magazine article here.

Not all risk is bad. While farmers work hard to reduce financial risk, innovators take calculated risks when it comes to new when it comes to new agronomic approaches.

Illinois farmer Maria Cox is one of those innovators. She and her crop advisor, Kyle Lake, with CHS in Carrollton, Ill., were named 2018 4R Advocates by The Fertilizer Institute. Each year, the award recognizes five farmer-retail agronomist teams who are dedicated to implementing the 4Rs of nutrient stewardship: using the right nutrient source, at the right rate, at the right time and in the right place.

In conversations with Cox and others who have actively embraced the 4Rs, common management challenges and strategies emerge. Among all the technologies and tactics they’ve tried, these growers point to strategies that are producing the biggest benefits in terms of soil health and the bottom line. (more…)

Start the New Season with a New Grease

cenex grease

Using the right grease is one of the most important decisions you can make as you prepare equipment for the high-pressure planting season. But recent updates in grease formulations might make you do a double take as you get ready for spring.

“When you put the grease into your grease gun and on bearings, you’re going to notice it looks different,” says Andrew Hamilton, director of technical services and quality for Cenex® lubricants and refined fuels. “That is on purpose. You’re getting a better grease.” (more…)

Anatomy of a grain trade

anatomy of a grain trade infographic

The global grain trading business is risky. Avalanches and mudslides can stop trains in their tracks. Striking union workers can halt grain loading at port. Freezing sea spray and high swells can delay ocean vessels for days. Commodity prices and costs shift constantly.

While those situations may be beyond a grain company’s control, there are countless other factors that a team of CHS experts successfully manages 365 days a year – always focused on efficiency, safety and profitability. (more…)

CHS reports a net income of $346.7 million for the first half of fiscal 2018

CHS income fiscal 2018

 

CHS Inc., the nation’s leading farmer-owned cooperative and a global energy, grains and foods company, today reported net income of $346.7 million for the first half of its 2018 fiscal year (six-month period ended Feb. 28, 2018), compared to net income of $223.7 million for the same time period a year ago.

Consolidated revenues for the first half of fiscal 2018 were $14.9 billion, down from $15.4 billion for the first half of fiscal 2017. Pretax income was $185.0 million and $249.1 million for the first half of fiscal 2018 and 2017, respectively. (more…)

Grain Markets Update

By Rich Cole, Grain Manager

 

Corn quality and railroad performance have been the two main features in the grain world lately. Robust corn exports off the PNW has created a much needed and welcome demand boost, along with some basis opportunity; but all the demand leaves us prone to railroad performance. The snow and cold temperatures that occurred along the PNW corridor in February hampered BNSF movement, slowed them down considerably, and spiked car values. This created a logistics knot that has taken quite a few weeks to untie and pushed back loadings at our elevators as we waited for cars. Recently, the BNSF has finally started catching up and has been pushing in train after train close together, making it quite a challenging situation at our locations.

Quality is the next big issue this year that we are struggling with. Early this winter it seemed the cold temperatures were causing the corn to crack and break but as the weather has warmed up we are still dealing with high amounts of FM. Perhaps this is related to growing degree days, the maturity of the corn, or maybe the speed of drying. Regardless of the reasons for it, we are continuing to struggle with quality and have a big book of trains yet to load in the coming months. We have taken discounts on everything from grades to screenings generated to demurrage on trains as loading has taken considerable effort. We appreciate your understanding and effort also as we’ve gone from sitting full waiting on trains to taking deliveries on extended hours to get these trains loaded.

From a market point of view, next up is the March 29th acreage report. Trade guesses are for the U.S. to plant more soybeans than corn for the first time in over 30 years. Time will tell what the actual numbers will be but it is certain to cause some volatility in our already volatile markets. Planting season is right around the corner and we want to wish everyone a safe and productive spring!

 

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© 2018 CHS Inc.