“We’re on the leading edge of all your agricultural needs”

May 2008

 FROM THE FERTILIZER DESK

            As you have been aware, fertilizer prices have increased greatly from previous years.  ASI allowed you to pre-book a portion of your 2009 needs and that looks like a sweet deal thus far.  We have been able to acquire more tons of DAP, Potash, and Anhydrous since our first allocation.  The price is somewhat higher but is still reasonable considering the current cost of replacement, world demand, and grain prices.  Call and ask if you are interested in additional tons for your fall needs.

Remember CoRon!! For the acres where you need a little extra nitrogen, consider liquid CoRon to give your yield a boost.

FROM THE CHEMICAL DESK

              If you haven’t planned your herbicide programs yet, ASI can recommend an excellent plan to fit your needs.  Residual programs are common this year and make good sense in this high risk crop that you are planting.

                  Fungicides have taken a price increase since our January price list.  ASI may not be able to honor the January prices unless you specifically ordered the product.  We believe supply will not be an issue.  Be sure to consider your multiple options: Headline, Stratego, Punch, Quilt, Domark, Quadris, and Folicur.

New soybean insecticides have also emerged to help combat aphids and other yield robbing insects.  Bayer has released Leverage as a contact and residual insecticide with a unique stress reducing compound.  FMC added Hero to their lineup providing quick knockdown and long pyrethroid residual.

Glyphosate is still a concern on price and availability.  We feel we are adequately covered for spring to fulfill our normal demand.  Manufacturers are talking about another price increase.  We’ll see.

FROM THE AGRONOMY DESK

              With high commodity prices and high input cost, it is more important than ever to keep an eye on what is happening in your fields.  The crop is talking to you all year telling you what it likes and what it doesn’t.  Frequent in field scouting is important to see what is happening and what should stay the same or be changed in the coming years.

                  If you can’t get out in your fields or you are not sure what you’re seeing, ASI can work out a scouting program for you.  Contact Ben for more information.

Also, as you evaluate new products and different methods on your fields, don’t forget to keep good documentation of where you placed the trials so they don’t get forgotten about at harvest time.  GPS tools can be beneficial in this task.

 FROM THE SEED DESK

              ASI has a good supply of seed corn available if you have any last minute needs.  Asgrow and Dekalb offer a superior lineup to make you the top yields!

                  Soybean seed is a different story.  Most seedstock is sold out at this time.  If you still have soybean seed to acquire, let us know right away.  If you will have extra seed on your farm, please notify us ASAP so we can get it to someone who is short.

FROM THE MARKETING DESK

                  Basis: We are currently dealing with a fairly wide basis for both corn and soybeans.  Historical norms appear to be out of the question for old crop corn and beans until we get past the July time period.  The processor in Peoria-Pekin have decent quantities of corn purchased for June-July ship.  They know that there are a lot of July HTA’s needing priced and shipped this summer.  Keep a close eye on corn basis and be ready to set basis on improvements.  Soybean basis may have more potential as the farmer has liquidated most of the old crop production at this time. If South America continues to struggle with exports, business will come to the Gulf and basis will stay firm if not improve.

Grain Purchasing Update: As most of you are aware, we are in unprecedented times with our grain markets.  The commercial buyers of grain (ADM, Cargill, Aventine, Tomen, etc.) have developed an extremely conservative approach to buying grain.  For example, as of this writing, Cargill will not purchase corn for any period past 45 days from today and lock in a flat price.  They will lock in basis, but no flat price.  Every commercial has a different has a different policy, but we are looking at a more limited grain sales structure than what we are accustomed too.  ADM will buy flat price grain at river terminals through January 09, but ADM Peoria will only purchase grain 45 days in advance of delivery.

We are staying in close contract with each commercial facility to keep abreast of opportunities and changes as they occur.  Policies change frequently as market conditions change.  We will continue offering every opportunity available to us so you can market your grain as fluently as the market allows.

For those that want to lock in multiple year sales, this new era of market volatility has necessitated some changes in marketing.  We have several clients who have set up hedge credit lines with their banks to allow them to sell 2009 or 2010 corn  and beans.  These clients will hedge (sell) corn or soybeans in their individual accounts to get deferred pricing done when they wish.  We have not talked to one banker who is opposed to this process for their clients.  Something to consider until the commercial grain elevators loosen up their buying practices a little.

Times have changed and service fees are rising on grain contracts at the commercial level as they assess risk and profit/loss scenarios.  Here at Akron, we have new minimums for sales of HTA’s. Corn minimum is 2500 bu. and soybeans is 1000 bu.

We will stay abreast of this situation for you.

 Cornbelt Marketing

Thoughts…A few observations of the commodity market.  The US Dollar continues to seek a base as it has been under relentless selling pressure for the last year.  The Petroleum market has reacted in opposite fashion, making new highs, as it hovers near a 120.00 per barrel in oil.  This should keep the ethanol producers in the black and the livestock industry struggling.  The political climate in Washington will always be a concern regarding the future of ethanol, especially if it’s viewed as a pet project of the Bush Administration.

Weather delays continue to support corn on breaks.  The on again, off again, strike in Argentina has kept soybeans bouncing like a yo-yo.  Wheat has now sold off on improving work crop prospects.  Some experts, those that are at least 60 miles from here, believe that we can’t plant enough acres of corn and beans to solve the current high prices of today.  Corn fits this better as world competition is less.

John Roach has been and is currently advocating the use of puts.  John is looking for at least once more selling opportunity this Spring.  April, May and June are historically the price peaks of the year.  2008 should be a great year.  We have the inputs locked in and prices have moved to new peaks.  Take time to reflect on the glass being half full, human nature always finds a way for us to make it half empty.  Be careful this Spring.

 Congratulations  Sam!

May 5th, Sam will  have worked at ASI for 40 years!  We are grateful for his insight and knowledge in our business.  Along with much chemical, seed and ammonia sales, Sam has worn out several  skidsteer loaders mixing tons and tons of fertilizer over the years.  When you see Sam, show him your appreciation for his work.

 Thanks Ty!

After 6 1/2 years of managing the Brimfield elevator operations, Ty has chosen to leave ASI and work for Ameren Cilco.  We are thankful for his hours of dedication and maintenance he put in at that growing facility.  We wish Ty and his family the best in the future!

Welcome New Hires

Change happens and we welcome some new faces to ASI.

Loren Walker started last fall as a semi driver for grain. Loren and his wife, Roma, live in Chillicothe.

Erich Lovecamp began his Akron tenure in April and will be using his versatile skills in the shop, tending, or driving a semi.  Erich is from Washington and is eager to learn much about our business.

Pat Hern is a new part-time employee you may see.  He is from Washington and is a retired machinist from CAT. 

Dustin Kenny has been hired at the Brimfield location to assist in housekeeping, maintenance, and loading. Dustin is a Monmouth native and currently resides in East Peoria. He will be getting married to Mandy on May 10th.

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