PAGE 16
www.thelandonline.com — “Where Farm and Family Meet”
THE LAND — APRIL 29/MAY 6, 2022
Weather here and abroad will tell the tale for soybeans NYSTROM, from pg. 15 Weekly export sales were as expected at 17.7 million bushels, bringing total commitments to 2.115 billion bushels. This is down 6 percent from last year when the USDA is projecting a year-on-year decline of 6.5 percent. We need sales to average a miniscule1.3 million bushels per week to achieve the USDA outlook. New crop sales were 21.3 million bushels. For mid-April, new crop soybean sales are a record 394.7 million bushels. Last year, new crop sales were only 243.6 million bushels. China has purchased 257.2 million bushels of 2022-23 soybeans when last year they had not bought any new crop
soybeans by this date. The USDA attaché in Argentina pegged soybean production at 41 mmt vs. USDA’s 43.5 mmt projection. The BAGE put Argentina’s soybean harvest at 46 percent complete as of April 28. Outlook: Soybean action was more mixed during the week with July soybeans struggling to stay above $17.00 per bushel. For the week, July soybeans closed 3.25 cents lower at $16.84.75 and the November contract gained 9.5 cents to settle at $15.14.75 per bushel. Factors to watch in soybeans include soyoil action, Chinese demand, crush margins, and residual effects from the war in Ukraine.
Keep your eye on the ball and manage your risk as you see fit. If the weather makes a turn for the better here and in South America, we could find ourselves scrambling to make catch-up sales. But until an event shakes the current longs out of their comfort zone, the downside is likely limited. Weekly price changes in July wheat for the week ended April 29: Chicago wheat dropped 19.5 cents to $10.55.75, Kansas City plunged 43.75 cents to $11.05.75, and Minneapolis was 3.25 cents higher at $11.66 per bushel. New contract highs were set in Minneapolis wheat during the week. v
Sugar beet processing is on a 24/7 schedule By DICK HAGEN The Land Staff Writer Emeritus RENVILLE, Minn. — Always an informative visit for me is my annual spring interview with Todd Geselius, Vice President of Agriculture with the Southern Minnesota Beet Sugar Cooperative. Todd Geselius With nearly 500 shareholder/growers across 17 counties, this co-op is the largest farmer-owned sugar beet processing company in the United States. In 2020, SMBSC growers planted approximately 121,350 acres producing just under 3.6 million harvested tons. So on March 30 with fresh snow still blanketing much of the countryside, Todd welcomed me into his office for a quick question-andanswer session. The Land: You had a tremendous harvest last year. Was it your biggest ever? Geselius: It was amongst the biggest ever. On planted acres we averaged about 29.2 tons per acre. Yes, 2021 was a very big crop. The Land: So what are sugar beet acres likely to be for 2022? Geselius: Our Board has decided to widen out our planting tolerance. Growers get a planting tolerance based on how many shares they own in the co-op. If we say the planting tolerance is 100 percent, that means if you own 100 shares you can plant 100 acres. We usually give a range to allow shareholders some flexibility to maintain crop rotation intervals. So our range this year is 90 to 105 percent, which we are expecting to result in a few less acres than last year. The Land: And how is this 45-year old factory working today? Geselius: Some ups and downs just like every season; but our dedicated staff keeps this factory humming. We installed some new equipment last fall which took some time to get functioning as desired. Daily slice averages about 12,000 tons per day when we are slicing frozen beets in the spring, so that’s currently about a normal pace.
The Land: I still see a huge piling site just east of Buffalo Lake. You have a factory still in high gear, 24 hours per day, 7 days per week, so when are you likely to finish this campaign? Geselius: The Buffalo Lake piling site will be next, after we finish the Murdoc piling site. We have 12 piling sites located across our 17-county production area. Our goal is always to process the entire harvested crop. The Land: How many years for you, Todd, here at this facility? Geselius: I’ve been in this role since 2010. It’s been a great industry to be a part of. Yes, the sugar beet and sugar cane industries have been pretty stable over the years. Today, about 54-55 percent of U.S. sugar production comes from sugar beets, the rest from sugar cane in the south. Yet we continue to be a net importer of sugar as domestic production is not able to keep up with U.S. sugar consumption. The Land: Are there any precautions for growers as they make ready for 2022 sugar beet plantings? Geselius: Like I always say, “It all depends upon the weather.” Right now I’m concerned about how deep this winter’s freezing temps worked into the
ground. At some point we’re going to need a warm rain to drive out some of that frost permeating our top soils. The Land: And the impact of the U.S. inflation on your growers and your employees? Geselius: For growers, the obvious … significant increases of all their production costs and that puts more pressure on the entire system. We’re blessed with tremendously well-informed growers. They adjust as needed. They are good stewards of their machinery and their soils. I salute them for their competitive spirits, courageous families and generous hearts always willing to help their neighbors as needed. The Land: Do growers use their own equipment when battling troublesome weeds, like glyphosateresistant water hemp and other pests or use a co-op’s rigs and crews or aerial applicators with an airplane attack? Geselius: Some, or all of those. It depends on their individual situation. Most of our guys either do their own or hire the local coop. But some things need to be done by aerial applicators. Suffice to say, when it’s wet out, it’s aerial applicators to the rescue! v
Ice cream makers are buying cream MIELKE, from pg. 11
Grade A nonfat dry milk fell to $1.7075 per pound on April 25 (the lowest since Jan. 6), but it rallied Cream inventories are steadily available in the on April 17 (the first gain in eight sessions) and West. Contacts report that demand is steady from closed April 29 at $1.755. The price remains purchasers in other regions. Regional ice cream unchanged on the week, 9.5 cents lower on the makers continue to purchase loads of cream. month, but 43 cents above a year ago. There were Demand for butter is steady to lower in both food eight sales on the week and 55 for the month, down service and retail markets and the higher prices from 82 a month ago. caused some retail customers to start utilizing alterStoneX points out that Russia has suspended natives to butter. Butter makers in the region say shipments of natural gas to Poland and Bulgaria as they are running busy schedules to meet current they are not being paid in rubles. “This was a new demand and to build inventory, but labor shortages and delayed deliveries of supplies continues to keep requirement imposed by Russia to bolster their currency,” says StoneX, “but many countries have been plants from running at capacity, according to Dairy Market News. See MIELKE, pg. 17
