Central Valley Cooperative

Wednesday Energy News

Steven Johnson — Wed, 22 Feb 2012 14:00:01 +0000

Energy – slightly lower as economy threatens oil demand – dollar higher – API later today. April crude oil is trading $0.52 per barrel lower to $105.73. The energy complex is pulled lower on weaker economic data in Europe and China. The euro-zone service sector weakened producing worries Europe could sink into recession. In china, February manufacturing sector dropped a fourth consecutive month as export orders fell. Iran offers to sell to UK and French oil companies if the companies sign a 2-5 yeas deal for oil agreement. Nuclear talks in Iran have been disappointing again. Underlying support come from behind the scenes thoughts Israel will attack Iran as patience is running thin.

Agronomy Topic of the Week: NutriSphere-N

Chad Phillips — Tue, 21 Feb 2012 22:37:03 +0000

Stable nitrogen pays and wasted fertilizer is wasted money…

Tuesday Energy News

Steven Johnson — Tue, 21 Feb 2012 14:53:13 +0000

Energy – cautiously higher in follow through to Iran cut to UK, France, + Greek deal + IEA support to release emergency stocks. March crude oil is trading higher to $104.47. Today’s energy market follows yesterday exciting rumor driven electronic traded market higher. Iran grabbed attention yesterday with the stoppage of oil sales to the United Kingdom and France. In addition, the IEA announce the readiness to release stocks in the case of sudden interruptions of oil flows from Iran. Syrian violence appears to be constant as the military continues to pound Homs and the Red Cross negotiates. Syrian and Iran are supportive of each other’s actions. The IAEA travels to Iran this week for more nuclear negotiations and inspections.

Agronomy Topic of the Week: Zinc & Ascend Seed Treatment

Chad Phillips — Fri, 17 Feb 2012 17:11:35 +0000

New to Central Valley Co-op in 2011 was Advanced Coating Zinc and Ascend as a corn seed treatment. Trial yield results show a 4—13 bushel yield advantage.

Friday Energy News

Steven Johnson — Fri, 17 Feb 2012 13:33:12 +0000

The energy complex trade is trading mixed as the dollar gains value. In honor of President’s Day Holiday, U.S. energy markets will be closed on Monday. March crude oil is trading at $102.77. Energy markets are mixed today as we have consolidated near many resistance price levels. These are dangerous levels that could propel prices higher, or kill any rally. Seasonally, products start to rally into a preseason gasoline rally soon. This morning’s news indicates more optimism that Greece may be saved by the EU. On Monday, a final European agreement is to be finalized in regards to saving Greece, but we have missed many deadlines. EU is swapping Greek bonds supported the equity market yesterday to nearly 4 year highs. This event turned the dollar from higher trade to lower trade and along with better than expected economic data, the energy market traded higher.

We are at dangerous levels as the market fundamentally should not move higher with declining global demand and other bearish fundamentals, but the technical trade has us on edge.

Thursday Energy News

Steven Johnson — Thu, 16 Feb 2012 13:38:18 +0000

The energy complex is trading lower as the dollar gains value. March crude oil is trading $0.58 per barrel lower to $101.22 compared to $101.77 yesterday at this time. This morning’s energy market is slouching on the lack of a Greek decision by the EU. It looks today that the Greeks are not able to comply with EU financial rules and global stocks markets are sinking lower. The battle for or against Greece appears to be intensifying. Portugal’s unemployment jumps to 14% from 12.4%. Italy’s January oil consumptions is down -5.9%. France is down -4.6%. A strong bond market in Spain is positive. GM posts a record $7.6 billion dollar profit. Iran’s TV threat to cut off shipments of crude oil to European customers appears to be only a threat as the Iranian oil minister denied the action later yesterday.

Another bearish report for propane was delivered yesterday. Propane stocks dropped 238,000 barrels for total U.S. propane stocks to total 46.439 million barrels. This is highest level in 5 years at this time of the year.

European gasoline prices are $1.65 per liter which equals $6.245 per gallon. This is a killer for the European economy. No wonder energy demand is lower.

Tuesday Energy News

Steven Johnson — Tue, 14 Feb 2012 13:51:28 +0000

The energy complex trade is trading lower as the dollar gains value. The market appears exceptionally quiet today as we nudge lower with positive German news and continued Iranian tensions. Greece continues to meet all lenders requirements to receive financing. Italian bonds auction went very well as interest cost drop. U.S. stocks ended on a strong close as a positive reaction to Greece activity.

Agronomy Topic of the Week: Continuing Impacts from Dry Fall in Spring of 2012

Chad Phillips — Mon, 13 Feb 2012 17:48:29 +0000

With the harvest of 2011 behind us we begin thinking about the 2012 crop. Because of the extreme dryness last fall, some agronomic management decisions may have to vary from the norm.

Agronomy Topic of the Week: Insecticide on Traited Corn

Chad Phillips — Mon, 13 Feb 2012 17:45:48 +0000

Growers throughout the Corn Belt have been planting corn with insect traits for approximately 15 years. Over that time, insects have adapted to their environments and have changed.

Monday Energy News

Steven Johnson — Mon, 13 Feb 2012 14:20:59 +0000

Energy – higher – Greek agree – global equities higher, dollar lower. The Greek Parliament passed the E.U. austerity measures to gain E.U. funding and to avoid bankruptcy. Greek riots where widespread. Greek opposition parties have to agree and sign an endorsement that they will not interfere with this agreement after future elections. Portions of Europe have faced the harshest winter in 30 years. European temperatures are forecasted to warm. Uncertainty over Greece and slowing global oil demand pressured the market lower last Friday. Funds are at all-time record levels for gasoline which will make the trade very nervous. Gasoline strength continues with the closure of a million barrels of refinery capacity in Europe, U.S. East Coast, Canary Islands, and now the Valero St. Charles refinery. Some for maintenance and some closures are for economic reasons. Weekend violence or perhaps it is better stated, “the slaughter” of Homs general population continues. Russia considers a peace plan for Syria. Iran may have completed their Fordo nuclear enrichment plant operational capacity as they meet with the IAEA next week.

The weekend Greek agreement is supporting global equities and commodities today. Demand is falling globally. We have to wonder how long this rally will continue.