One life lost is too many. That idea is the driving force behind Nationwide’s Grain Bin Safety Week program and Think Grain Bin Safety campaign, and that’s why CHS is proud to partner with Nationwide in raising grain bin safety awareness. But for Nationwide, it’s way more than just a campaign.
(more…)Strong Global Demand for Ag and Energy Generated $782.6 Million in Fiscal 2023 First Quarter Net Income
CHS Inc., the nation’s leading agribusiness cooperative, today released results for its first quarter ended Nov. 30, 2022. The company reported quarterly net income of $782.6 million compared to $452.0 million in the first quarter of fiscal year 2022.
Fiscal 2023 first quarter highlights include:
Thursday January 5, 2022 By: Eric Peterson
Corn traded higher overnight as the March contract attempts to rebound after seeing a $6.85 to $6.52 range so far this week. Weather so far seems to be favorable. Argentina weather impacts have been more harmful than beneficial as production forecasts have been sliding lower. Look for slightly higher trade today as commodity markets could see a friendlier environment today with crude oil higher.
Soybeans saw light two sided trade overnight as news remains light and uneventful. Soybeans seem to be taking a breather after this weeks selling pressure. March soybeans continue to stay above $14.50 without testing that level since early December. Look for mostly quiet trade today as futures stay above the major moving average support.
Spring wheat saw small gains overnight as we see a small recovery from recent losses. Overall prices remain choppy and price direction controlled by money flow. Black Sea exports still loom over the wheat market, but some bargain buyers are showing up this morning. Look for slightly higher trade today after the recent sell off.
| Old Crop Premium | New Crop Target | Trigger Date |
| 0.25 | 10.00 MWU23 | 8/25/23 |
| 0.43 | 15.00 SX23 | 10/19/23 |
| 0.26 | 6.60 CZ23 | 11/25/23 |
Any information, materials, and opinions (together, “CHS Materials”) presented by CHS to the recipient of such CHS Materials, whether in written or oral form, is for general information purposes only and does not constitute legal or other professional advice and should not be relied on or treated as a substitute for specific advice relevant to particular circumstances. CHS makes no warranties, representations, or undertakings, whether express or implied, about any CHS Materials (including, without limitation, any as to the quality, accuracy, completeness, or fitness for any particular purpose of any CHS Materials). Recipient agrees that CHS shall not be liable to recipient relating to or resulting from the use of any CHS Materials or any inaccuracies or errors therein or omissions therefrom.
At the CHS Annual Meeting tonight, attendees voted to award a $20,000 first-place teacher grant from the CHS Foundation to Amelia Hayden, a first-year ag educator at Osseo-Fairchild High School. In honor of its 75-year anniversary, the foundation is awarding a total of $75,000 in grants for K-12 teachers to implement projects that will engage students in experiential agricultural education.
(more…)Friday December 9, 2022 By: Eric Peterson
Corn traded higher overnight with the March contract closing at the session high of $6.47. Prices continue to consolidate, with March corn staying in an approximate trading range of $6.50 to $6.40. The USDA’s WASDE report later this morning is expected to show an increase in ending stocks to 1.237 billion bushels vs. 1.182 billion in November due to lower demand. Look for higher trade to start the day as all eyes will be on today’s report.
Soybeans were mixed overnight with the January contract trading a ten cent range. January soybeans got up to $14.92 overnight and is at the highest levels it has been since late September. The market is expecting the U.S ending stocks to grow from 220 million bushels in November to 238 million bushels for today’s WASDE report. Look for mostly mixed trade to begin the day.
Spring wheat was slightly higher overnight as the market seems to be bouncing after possibly being oversold. March wheat has found support after breaching $9.00 this week. The market is expecting an increase to 576 million bushels in today’s report up from 571 million bushels in November. Look for slightly higher trade leading up to today’s report.
| Old Crop Premium | New Crop Target | Trigger Date |
| 0.25 | 11.00 MWU23 | 8/25/23 |
| 0.50 | 15.00 SX23 | 10/19/23 |
| 0.23 | 6.60 CZ23 | 11/25/23 |
Any information, materials, and opinions (together, “CHS Materials”) presented by CHS to the recipient of such CHS Materials, whether in written or oral form, is for general information purposes only and does not constitute legal or other professional advice and should not be relied on or treated as a substitute for specific advice relevant to particular circumstances. CHS makes no warranties, representations, or undertakings, whether express or implied, about any CHS Materials (including, without limitation, any as to the quality, accuracy, completeness, or fitness for any particular purpose of any CHS Materials). Recipient agrees that CHS shall not be liable to recipient relating to or resulting from the use of any CHS Materials or any inaccuracies or errors therein or omissions therefrom.
CHS owners elected five board members to three-year terms during the cooperative’s 2022 annual meeting held Dec. 1 and 2 in Minneapolis, Minn.
(more…)Friday November 11, 2022 By: Eric Peterson
Corn is starting the day slightly higher with the December contract trading eight cent range overnight. The market found some buying support overnight as fresh news remains light. Corn commitments as a percentage of the USDA’s target for the year sit at 26.9%, the lowest going to back to 1990. Look for higher trade today on a strong crude oil market.
Soybeans are double digits higher this morning, erasing the losses from Thursday. Export sales came in at 29.2 million bushels, well above the 20.2 million needed per week to hit the USDA target. Total commitments are close to being in line with last year. The soybean market is expected to remain strong as South American weather remains dry.
Spring wheat closed five cents higher this morning with the December contract trading a relatively narrow eight cent range. U.N. and Russian officials are expected to meet today to discuss the export deal extension. The market will likely chase the headlines. U.S wheat remains a premium to the rest of the world market but we did exceed the sales amount needed per week to hit the USDA target.
Any information, materials, and opinions (together, “CHS Materials”) presented by CHS to the recipient of such CHS Materials, whether in written or oral form, is for general information purposes only and does not constitute legal or other professional advice and should not be relied on or treated as a substitute for specific advice relevant to particular circumstances. CHS makes no warranties, representations, or undertakings, whether express or implied, about any CHS Materials (including, without limitation, any as to the quality, accuracy, completeness, or fitness for any particular purpose of any CHS Materials). Recipient agrees that CHS shall not be liable to recipient relating to or resulting from the use of any CHS Materials or any inaccuracies or errors therein or omissions therefrom.
Wednesday November 9, 2022 By: Eric Peterson
Corn closed two cents lower this morning on positioning ahead of the 11am USDA report. Many traders are expecting yield, production, and carryout to be slightly higher. December corn has dipped toward the 200 day moving average of $6.64. It hasn’t traded below its 200 day moving since Aug 22nd. Look for mostly lower trade ahead of today’s report.
Soybeans were weaker overnight on lower soybean oil and higher meal. Weather maps for Argentina continue to trend wetter for next week which could provide some needed relief and allow planting to begin. Soybeans are expected to remain strong on good demand and poor weather in South America.
Spring wheat traded both sides overnight but turned lower around 7am. Today’s report is expected to show only minor changes to the balance sheet. France cut its wheat export forecast lower by 100,000MT. The market is expected to remains volatile as demand is slow.
Compass contracts are a great way to market your new crop by pricing grain daily at a fixed higher futures price. Below are today’s closing bids for two types of compass contracts we offer. If you would like to make an offer or would like more information please give me a call at the office. (All compass contracts have a 48 hour probation period.)
| Price Builder Bonus | Daily Price Plus | Futures at 8:00am | |
| SX23 Oct23 | $14.18 | $14.05 | $13.86 |
| CZ23 Oct23 | $6.50 | $6.35 | $6.17 |
| MWU23 Sept23 | $9.65 | $9.55 | $9.42 |
| Old Crop Premium | New Crop Target | Trigger Date |
| 0.45 | 11.00 MWU23 | 8/25/23 |
| 0.45 | 15.00 SX23 | 10/19/23 |
| 0.30 | 7.00 CZ23 | 11/25/23 |
Any information, materials, and opinions (together, “CHS Materials”) presented by CHS to the recipient of such CHS Materials, whether in written or oral form, is for general information purposes only and does not constitute legal or other professional advice and should not be relied on or treated as a substitute for specific advice relevant to particular circumstances. CHS makes no warranties, representations, or undertakings, whether express or implied, about any CHS Materials (including, without limitation, any as to the quality, accuracy, completeness, or fitness for any particular purpose of any CHS Materials). Recipient agrees that CHS shall not be liable to recipient relating to or resulting from the use of any CHS Materials or any inaccuracies or errors therein or omissions therefrom.
Corn remains slightly lower to start the week. The November WASDE report is November 9th at 11:00am. Private estimates of corn and soybeans production are higher ahead of Wednesday’s report. Argentina corn planting progress is 23% complete vs. 39% last year because of a dry start to the growing season. Look for the rangebound trade to continue.
Soybeans were mixed overnight with support from strength in the meal and soy oil markets. Demand remains strong on news that China has agreed to contract to buy 10mmt of soybeans, additional details were not given. Look for mostly higher trade today as demand is good in the short term.
Spring wheat was lower once again last night and has basically erased and any recent price gains. The market continues to be fixated on headlines out of Russia/Ukraine. Russia is now allowing Ukraine to export but no talk of an extension. Look for mostly lower trade today as there seems to be very little supportive news this morning.
| Price Builder Bonus | Daily Price Plus | Futures at 8:00am | |
| SX23 Oct23 | $14.25 | $14.10 | $13.97 |
| CZ23 Oct23 | $6.60 | $6.40 | $6.22 |
| MWU23 Sept23 | $9.70 | $9.60 | $9.50 |
| Old Crop Premium | New Crop Target | Trigger Date |
| 0.45 | $11.00 MWU23 | 8/25/23 |
| 0.45 | $15.00 SX23 | 10/19/23 |
| 0.30 | $7.00 CZ23 | 11/25/23 |
Any information, materials, and opinions (together, “CHS Materials”) presented by CHS to the recipient of such CHS Materials, whether in written or oral form, is for general information purposes only and does not constitute legal or other professional advice and should not be relied on or treated as a substitute for specific advice relevant to particular circumstances. CHS makes no warranties, representations, or undertakings, whether express or implied, about any CHS Materials (including, without limitation, any as to the quality, accuracy, completeness, or fitness for any particular purpose of any CHS Materials). Recipient agrees that CHS shall not be liable to recipient relating to or resulting from the use of any CHS Materials or any inaccuracies or errors therein or omissions therefrom.
Net Income of $1.7 Billion and Revenues of $47.8 Billion Exceed Previous Records
CHS Inc. reported net income of $1.7 billion for the fiscal year ended Aug. 31, 2022, compared to $554.0 million for fiscal year 2021.
Key financial drivers for fiscal year 2022 results include:
“We appreciate the support of our member cooperatives and farmer-owners, which enabled us to deliver a substantial increase in earnings for the fiscal year, while also helping feed people around the world,” said Jay Debertin, president and CEO of CHS Inc. “Additionally, our employees demonstrated their dedication to helping our owners and customers succeed in a turbulent year for agriculture. As a result of these collective efforts, CHS intends to return $1 billion in cash patronage and equity redemptions to our member cooperatives and farmer-owners in fiscal year 2023, reflecting the company’s financial strength and demonstrating the value of cooperative ownership.
“We are proud of our role in the cooperative system. We will continue to make investments that strengthen rural America and help our farmer-owners and customers meet the growing demand for agricultural products. Our investments in infrastructure, supply chain capabilities, people and innovation are driving operational and efficiency gains throughout our expansive network,” Debertin added. “Although economic uncertainty, logistical challenges and inflationary pressures remain, CHS is well-positioned to maximize value for our member cooperatives and farmer-owners.”
Fiscal year 2022 segment results are:
Pretax earnings of $616.6 million represent a $627.1 million increase versus the prior year and reflect:
Pretax earnings of $657.6 million represent a $359.5 million increase versus the prior year and reflect:
Pretax earnings of $478.0 million represent a $357.0 million increase versus the prior year and reflect:
Pretax earnings of $57.9 million represent a $48.9 million decrease versus the prior year and reflect:
CHS Inc. (www.chsinc.com) is 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, financial condition and results of operations, 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 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, 2022. These factors may include: changes in commodity prices; the impact of government policies, mandates, regulations and trade agreements; global and regional political, economic, legal and other risks of doing business globally; the ongoing war between Russia and Ukraine; the impact of inflation; the impact of epidemics, pandemics, outbreaks of disease and other adverse public health developments, including COVID-19; the impact of market acceptance of alternatives to refined petroleum products; consolidation among our suppliers and customers; nonperformance by contractual counterparties; changes in federal income tax laws or our tax status; the impact of compliance or noncompliance with applicable laws and regulations; the impact of any governmental investigations; the impact of environmental liabilities and litigation; actual or perceived quality, safety or health risks associated with our products; the impact of seasonality; the effectiveness of our risk management strategies; business interruptions, casualty losses and supply chain issues; the impact of workforce factors; our funding needs and financing sources; financial institutions’ and other capital sources’ policies concerning energy-related businesses; uncertainty regarding the transition away from LIBOR and the replacement of LIBOR with an alternative reference rate; technological improvements that decrease the demand for our agronomy and energy products; our ability to complete, integrate and benefit from acquisitions, strategic alliances, joint ventures, divestitures and other nonordinary course-of-business events; security breaches or other disruptions to our information technology systems or assets; the impact of our environmental, social and governance practices, including failures or delays in achieving our strategies or expectations related to climate change or other environmental matters; the impairment of long-lived assets; and other factors affecting our businesses generally. 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 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.
© 2023 CHS Inc. | Cookie Preferences
