Grain

of $20.48/barrel on March 31st. The drop in oil prices has caused alcohol plants to reduce production and in some cases to shut down completely. The demand outlook for ethanol led USDA to reduce their estimate of corn used for alcohol production by 375 million bushels in their April Supply and Demand report which increased corn carry outs by 200 million bushels. The impact of reduced consumption of alcohol on corn prices has been a $.73/bu. drop since late January in May corn futures. As spring planting begins, USDA has projected almost 97 million corn acres will be planted this year. Not many believe we will see that acreage figure but at this point a spring rally in corn seems unlikely. The supply of dried distillers grain (DDGs) has not kept up with the livestock producers demand as alcohol production has been cut. Soymeal demand has increased as a replacement and I initially was bullish soybeans for that reason. Expectations have had to be tempered however as the soy oil market is now oversupplied as the restaurant business has largely shut down. Demand for wheat, however has increased as people have stocked up on bread and flour in anticipation of shortages. July wheat, after bottoming in midMarch has moved higher on both demand and weather concerns. Milo demand has also been strong with China being a big buyer of US grain sorghum recently. Milo basis continues to show strength as a result of China’s continued interest in buying US milo. The uncertainty caused by the corona virus will make it hard for the grain market to find direction until traders can be assured that the current pandemic has been contained and the

Marketing opportunities seem minimal as the news in the grain market remains bearish. Having futures orders in above current market prices can provide the opportunity for fills should the market rally suddenly. Our Compass contracts may also be a good marketing alternative as you can price your production each trading day above market prices. These contracts have double up features if the market rallies which is their only downside. Please let us know if you have any interest in taking advantage of these opportunities.

While we feel fortunate to be able to go to work each day, our locations have been locked up as we lessen our contact with our venders, our associates in the business, and unfortunately with you, “Our” customers. This has not been easy as we greatly value our interaction with our member/owners, but it has been necessary for both your protection and for ours. We continue to do our work just as you do your vitally important work of making sure the nation has a safe and secure food supply. We miss our interaction with our member/owners and we look forward with great anticipation to the day when you are once again in the offices to conduct your business.

For everyone in our country who have been directly impacted by this health crisis, whether by illness or unemployment or have tragically lost loved ones, our thoughts and our prayers are with you. We live in a great country and the truly amazing thing about Americans is our ability to look after one another in times like these. Stories abound of health care workers making heroic efforts in emergency rooms to save lives, of owners of closed restaurants providing meals for those health care workers, of unemployed workers giving their time at food banks, of people using their sewing skills to make critically needed faces masks, of people making lunches for children no longer in school, and a multitude of kind things that people have done on a daily basis to help their fellow Americans. These incredible stories have become commonplace. It is inspiring to watch ordinary people do extraordinary things in times of crisis. Even in this time of corona virus we are blessed to live in this amazing country with all these amazing people. And those of you in American agriculture are no exception.

Please let us know if we can help you with any of your grain marketing plans and we look forward to helping you complete another successful growing season.

Date Wheat Corn Milo Soybean

01/7/20 4.27 3.70 3.20 8.29 02/6/20 4.23 3.64 3.14 7.66 02/21/20 4.26 3.67 3.12 7.91 03/18/20 4.02 3.25 2.85 7.26

Last Year –May 2019

AVG. 3.79 3.64 3.14 6.93