The markets turned their eyes back to the ongoing conflict between Russian and Ukraine the later part of this week. There has been a marked escalation on attacks on both Russian and Ukrainian ports. The Russian Novorossiysk port was attacked resulting in a large fire at an oil terminal. Approximately 1.6-2.1 MMbbl of crude oil are shipped out of the Novorossiysk port. Ukrainian drones hit central Moscow before being shot down by Russian air defense.
All eyes are on next week’s ProFarmer crop tour. Many are wondering what next week’s forecast effect will be on yield. Most of the crop is mature enough to avoid major damage, but conditions will decline. Last week’s U.S. Drought Monitor Map showed improving conditions in the corn belt but revealed declining conditions in the Northern Plains. There has been some talk of increased Chinese interest in U.S. corn. Private exporters reported a sale of 112,000 MT of corn for 2023/2024 to Mexico.
Prices have been driven all week by forecasts for high temperatures and no rain for the oncoming week. The heat dome that appears to be setting up in the central states will increase chances of yield loss in areas where they haven’t seen rain. With the tight U.S. carryout, any reduction in yields could have a large effect on the supply and demand for soybeans in the U.S. There is also talk that China is showing interest in U.S. beans.
Wheat moved higher the end of the week on reports of damage caused by a Ukrainian drone in Moscow’s central business district. Harvest is slowly beginning to start across the CHS Northern Grain area. It was hampered early in the week by rain. Protein is coming in all over the board. India is seeing it’s driest August on record since 1901. This has prompted them to ban exports and they are expected to import up to 10mmt of Russian wheat and tightening world supply. News from the Polish Institute of International Affairs are proposing to ban Russian ships from entering EU ports if merchant ships in the Black Sea are attacked.
ERSKINE, MINN. (June 14, 2022) – CHS will begin construction this summer on a new state-of-the-art grain facility with 1.25 million bushels of additional storage capacity in Erskine, Minn. The facility is slated to be operational in the fall of 2023 and will help CHS expand operational capabilities and increase efficiency across its footprint. The new shuttle elevator will bring total capacity at the location to 4.55 million bushels of storage and will complement existing CHS grain, agronomy and energy assets and offerings for area producers.
“CHS is committed to growing our cooperative with customer-focused solutions that make it easier for producers to do business with us,” says Rick Dusek, executive vice president of CHS ag retail operations. “Our people, assets, capabilities and operational footprint are the strengths of our retail platform, and this important project advances our strategy to expand our customer-focused retail solutions platform, creating value and driving growth for farmers – as customers and owners. This facility is a key location in the flow of grain from the Upper Midwest to export terminals in the Pacific Northwest.”
The new terminal is the latest in a series of investments throughout Minnesota and North Dakota by CHS. In keeping with its core value of safety, the company has placed priority on safety features and advancements to improve operating conditions.
“Along with expanding our grain handling capabilities and value to area farmers, the new facility will create advantages for our employees, farmers and community,” says James Hardy, who manages CHS Northern Grain, a CHS business unit with eleven grain facilities in northwest Minnesota. “Improved traffic flows, better operating conditions, advanced equipment and the latest safety advances are just some of the innovations to help us provide a better customer experience. We want to get producers in, out and back to the field as quickly and safely as possible.”
Vigen Construction out of East Grand Forks, Minn., is overseeing this construction project.
CHS Northern Grain is a part of CHS Inc., (www.chsinc.com) a leading global agribusiness owned by farmers, ranchers and cooperatives across the United States. Diversified in energy, agronomy, grains and foods, CHS is committed to creating connections to empower agriculture, helping its farmer-owners, customers and other stakeholders grow their businesses through its domestic and global operations. CHS supplies energy, crop nutrients, seed, crop protection products, grain marketing services, production and agricultural services, animal nutrition products, foods and food ingredients, and risk management services. The company operates petroleum refineries and pipelines and manufactures, markets and distributes Cenex® brand refined fuels, lubricants, propane and renewable energy products.
This document and other CHS Inc. publicly available documents contain, and CHS officers and representatives may from time to time make, “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on CHS current beliefs, expectations and assumptions regarding the future of its businesses, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of CHS control. CHS actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors that could cause CHS actual results and financial condition to differ materially from those indicated in the forward-looking statements are discussed or identified in CHS public filings made with the U.S. Securities and Exchange Commission, including in the “Risk Factors” discussion in Item 1A of CHS Annual Report on Form 10-K for the fiscal year ended August 31, 2020. Any forward-looking statements made by CHS in this document are based only on information currently available to CHS and speak only as of the date on which the statement is made. CHS undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise, except as required by applicable law.