Co-ops sponsor young driver
(11/18/2008)

Every time 15-year-old Ashley Fritts makes a run in her sleek drag-racing car, the audience gets a quick look at an up and coming race star — and the red Cenex® logo. That’s because three North Dakota cooperatives help sponsor the young competitor on behalf of Cenex® fuels and lubricants.

Fritts races in the Junior Dragster division in the 890 class, which means her car reaches 73 mph in 8.9 seconds on the 1/8-mile track. A resident of Mandan, N.D., she competes mainly in Minot but also in other North Dakota towns as well as in Pierre, S.D. Her co-op sponsors include Cenex of Minot, Farmland Co-op Inc. of Oakes and New Century AG of Crosby.

“We thought this was an interesting sponsorship opportunity and another way to get involved in our community,” says Roger Bischof, petroleum sales and marketing manager for Cenex of Minot. “The Cenex® brand is all about performance and we have an awesome line of products, which fits well with the high energy and high performance of drag racing. Also, many of our local racers are farmers who race on the weekends, so we know our agricultural customers appreciate a brand that supports the sport.”

Fritts, who has been racing since she was 10 years old, ended the season in third place for the IHRA in Minot. “She’s shooting for that number one spot next year. She’ll be racing in the 790 class, where cars reach 85 miles per hour, so we’re moving up,” says her father, Dennis Fritts. “We’re talking serious ‘girl power.’ It’s super safe, though. She’s harnessed in and driving under controlled conditions.”

“We’re very thankful for the terrific support we’ve gotten,” he adds. “With the price of fuel as high as it was this past year, we couldn’t have gone nearly as far without that help. In return we work hard in promoting the great Cenex® products — and we hope we do a good job representing the brand.”

Ashley’s success “reflects well on us as her sponsors,” says Bischof. “This is one of those feel-good things that’s good for everyone involved. We’re helping a young person achieve their goals and getting the Cenex® name out there in a positive way.”

CHS meets with Farm Broadcasters
(11/17/2008)

Several representatives of CHS businesses faced farm media from across the country last week during the National Association of Farm Broadcasters (NAFB) annual “Trade Talk” conference. CHS was among 100 agricultural businesses and organizations represented and its staff experts were interviewed on a variety of topics. They included Alan Goldsby, account manager, Crop Nutrients; John Helmstetter, market analyst, Country Hedging, Inc.; and Jamey Grafing, chief financial officer, Cofina Financial. Darin Hunhoff, vice president, propane, also participated in the day-long event through his association with the Propane Education and Research Council (PERC).

“Farm broadcasters are very influential in their communities and they have a good sense of issues farmers are most concerned about, like grain market volatility,” says Helmstetter. “This venue was a good way for CHS to increase its name recognition and to explain how our business units work together to add value.”

Hunhoff, who serves on the ag advisory committee for PERC, communicated PERC research in developing new propane technologies growers can use, like propane-powered irrigation systems, tankless water heaters, and lawnmowers. “These farm broadcasters will help us generate thousands of impressions about CHS leadership in the propane industry,” says Hunhoff.

Broadcasters from Missouri, Minnesota, Montana, North Dakota, Nebraska and Wisconsin visited the CHS display for the interviews, which will be broadcast locally during the next several weeks.

Photo: CHS Crop Nutrients Account Manager Alan Goldsby answers questions from Mike Hergert, Red River Farm Network, Grand Forks, N.D.

Market Update from Country Hedging
(11/14/2008)

The week again proved to be interesting, but not nearly as nerve-racking as previous weeks. Headliners included the USDA November crop report, continuing stock market volatility and wide-ranging commodity prices.

Monday’s markets brought us stronger commodity prices and surging stocks. Commodities rallied on favorable outside markets while stock prices moved higher on the news of an economic relief package in China. Enthusiasm, however, proved short-lived. Meanwhile, grain people everywhere braced for the USDA crop report and its implications.

The November report printed numbers that, on paper, seemed neutral to, perhaps, friendly. The biggest “surprise” was the U.S. corn yield being cut to 153.8 bushels per acre, while most in the trade expected a better yield based on field reports to date. Also surprising was the USDA’s cut of the Brazilian crop size to 60 million tonnes. South American production is currently being affected by dry weather through Argentina and Southern Brazil. Stay tuned here. Market response ultimately moved markets lower due more to outside influences than the crop report itself.

Harvest progress proved slow for the remaining corn acres left in the Corn Belt. Continuing precipitation in various forms hindered any attempt to get those last remaining acres. USDA said 29 percent of the crop has yet to be harvested, with Nebraska, Wisconsin, Iowa and both Dakotas lagging the national average. Next week’s weather appears better for harvesting based on current forecasts. Many need a freeze-up right now.

For the week, corn futures posted a general decline while exhibiting a 25-cent range. Soybeans did likewise, in a range of nearly 80 cents. Wheat markets gained on row crops, with most markets closing the week higher in ranges of 40-55 cents. Weekly charts for all grains mentioned looked flat to sideways over the past four weeks. Demand for soybeans has been good over this period, while corn and wheat continue to suffer from world-wide competition that has sellers tripping over each other to do the available business. Prices typically suffer in that environment.

Equity markets again experienced a rollercoaster ride this week, highlighted by Thursday’s near 900-point intraday swing. The stocks saw roughly a 1,200-point range for the week and look to finish in the middle of this range as the week closes. The October low held, as did the October high. The weekly chart looks sideways going back to early October. Bad retail news and TARP revisions hamstrung the equity markets.

The markets seemed calmer this week and appear to be building a solid base right now. Here’s hoping the news starts getting better and prices stabilize further.

For daily commentaries on specific commodities in grains, energy and livestock, visit www.countryhedging.com.

This information is taken from sources which Country Hedging believes to be reliable, but is not guaranteed by it as to accuracy or completeness and is published here for information purposes only. There is a risk of loss when trading commodity futures and options. Country Hedging Inc. bases its recommendations solely on the judgment of Country Hedging Inc. personnel.

Indian tender could be telltale sign in urea
(11/14/2008)

The expectations of big urea buying from India have been present since late last spring, when predictions were that the country would need to purchase at least ten percent more fertilizer this year than the six million tons they bought last year. But purchases by the country were delayed all through the summer, and this fall they have been fewer and smaller than expected, notes Keith Swanson, CHS dealer risk management services. “The results of the country’s current tender could have a major impact on the global urea market and whether it finds a floor anytime soon.”

Earlier this month, suppliers from the Arab Gulf lowered their price by $100/ton, to around $245/ton, for a tender offer on 375,000 tons, among total tender offers of some 800,000 tons. “If India takes only the lower-priced product from the Arab Gulf suppliers, it could mean the country has other financial issues,” he says. “But if they take the whole 800,000 tons, it probably means the price is low enough and they want to get enough product into the country to meet farmer demands for the current season. That could provide the market floor everyone has been waiting for.”

With this major change in India’s buying pattern, it has been hard to predict what will happen next, but as potentially the biggest buyer in the current global market, all eyes are still on how much the country purchases and at what price, he adds.

Stores drive sales with at-the-pump radio network
(11/13/2008)

Next time you fill up your car, you may hear the Cenex Guy’s voice piped over the speakers — and you just may have a sudden craving for ice cream. That’s because a growing number of retailers are broadcasting Hometown Radio Network, an innovative program that’s building brand and store loyalty while increasing sales and profitability.

“The ROI for us has been incredible. Our first three months, in-store sales were up 4 percent,” says Kevin McDonald, store manager for Community Coops of Lake Park in Detroit Lakes, Minn. “That’s impressive, especially considering industry-wide fuel gallons were down 5 percent at that time. Fewer customers were visiting our pumps, but the Hometown Radio Network was driving more of them inside to buy more.”

Adds McDonald: “We saw fast increases in our A&W and Tastee-Freeze businesses as well as general merchandise. We’ve actually had people say they didn’t know we had an A&W inside until they heard the commercial at the pumps, which just amazed me.”

Whenever the store is open, shoppers hear music interspersed with custom-produced announcements about in-store specials or community events, plus corporate Cenex® messages (such as seasonal commercials that are currently promoting Cenex Gift Cards), along with advertising for local businesses.

Selling just three commercials a month to other companies covers the program’s entire cost — and even nets the co-op $100 in revenue. “Once other business operators hear the program, they want to be on it. It’s an easy sell, and the commercials created for those customers are beautifully done,” says McDonald, who has sold spots to a storage company, an ATV dealer and an assisted living center.

“We’re getting positive response from every c-store using the program,” says Jerry Johnson, producer of the Hometown Radio Network programs. “It’s a great way to communicate everything from ‘come in to enjoy a hot coffee’ to ‘come inside for tickets to the Lion’s Club haunted house’ to ‘we’re proud to help schools through the Fuel Your School program.’”

McDonald likes having commercials playing on-site that reinforce the newspaper and radio advertising he runs locally as well as the CHS-funded campaign. “Everything works together to set us apart from the competition, from the Cenex Guy they love seeing on TV to the commercial they hear when filling up,” he says. “Jerry designs creative, well put-together commercials that fit the energetic Cenex® brand. And he thinks of extra touches, like using my name as the store manager: ‘Kevin wants to thank you for stopping by and would like to invite you inside for a specially priced fountain drink.’ That gives a hometown feeling.”

As president of the Professional Convenience Store Managers Association, McDonald has recommended the program to other retailers. “I’m a fan. It’s as close to a no-brainer as you’ll find in this business.” Learn more about the program at www.hometown-radio-network.com or read an article from CSP about another retailer using the Hometown Radio Network,

CHS honored at National FFA Convention
(11/11/2008)

The National FFA Organization recently honored CHS for its outstanding support as a 20-year exhibitor at the National FFA Career Show.

The career show is an integral part of the National FFA Convention and highlights career opportunities for students. Representatives of agribusiness, universities and industry associations met with students throughout the three-day event, held Oct. 22-24 in Indianapolis, Ind.

“To see the enthusiasm that these students have for agriculture and related fields is exciting. There are so many opportunities for these students, and to see them all in one place is really eye-opening for many of them,” says Linda Tank, vice president of marketing communications for CHS.

More than 400 participating exhibitors showcased the diversity of agriculture and its related fields to the more than 54,000 members of FFA, their advisors, supporters and guests who attended the convention and career show. (View photos from the CHS booth at the career show and see how students find "a spot" in FFA.)

The career show is just one of the many opportunities open to FFA members taking part in the convention. "Whether it is classroom experiences, their Supervised Agricultural Experiences, the leadership development programs--those are skills that every student can use no matter what career they are pursuing,” says Tank who also served as a proficiency award judge.

The CHS Foundation provides support to a wide range of youth development programs, including FFA at the state and national levels in the areas of entrepreneurship, education, proficiency awards, and professional leadership development programs.

FFA is a national youth organization of 507,763 student members preparing for leadership and careers in the science, business and technology of agriculture with 7,439 local chapters in all 50 states.

Date change for Indianapolis CHS Directors Conference
(11/10/2008)

Originally scheduled for December, the CHS Directors Conference, Indianapolis, Ind., has been moved to March 18-19 at Hyatt Regency Indianapolis. This meeting is now prior to CHS Update Meeting, March 19.

The Indianapolis program features:

Allan Gray, Ph.D., economist at Purdue University Center for Food and Agricultural Business, discussing the commercial ag producers and their impact on agribusinesses, using results from the most recent large producer study led by Purdue.

Jerry Clark, CHS Crop Nutrients, discussion on how CHS Crop Nutrients works with customers and suppliers across the globe to add value to producers;

Cheryl Schmura, CHS Crop Nutrients Vice President, executive dialogue;

Dan Alexander, ABG, will develop leaders on business strategy tools that help understand the impact of industry change, focusing on scenario planning using tracked leading indicators.

To register for the Indianapolis event on-line, log on to www.chsinc.com, click on Business Services and then training and consulting. If you have any questions or require any assistance in registering directors for this event please contact Sue Nelson (sue.nelson@chsinc.com) or call 800-232-3639, ext. 4503.

Additional 2009 CHS Directors Conferences and CHS Managers Conferences featuring similar content will be available in San Antonio, Texas; Sioux Falls, S.D.; Medora, N.D.; Wisconsin Dells, Wis.; and Billings, Mont.

High oil/High protein soybean premium program pays
(11/5/2008)

Seems like the world over, the search is on for a better bean. The economics of producing and crushing soybeans with high oil content is widely acknowledged as a win-win for growers and processors alike. Increasingly, global soybean processors and food companies are demanding, and paying premiums for, soybeans yielding higher protein content as well.

Many ingredient buyers require protein content as high as 48 percent. If that threshold cannot be met the product is either discounted or limited to markets with lower protein standards. Recognizing the profitability and growth opportunities, CHS offers a program that adds value to growers’ hard work and makes us all more competitive.

For 2009, the CHS High Oil/High Protein premium program threshold is 34.5 percent protein and 18.5 percent oil. CHS premium payouts start at 35 and 19.1, with a maximum of 7 cents for each.

CHS introduced its High Oil/High Protein premium program in 2005. To date, we’ve paid grower premiums in excess of $700,000, with the highest program participation being paid last year. Growers throughout the region are realizing the added value our program provides to improve their profitability. Better beans, better markets, better value.