ADM News ADM MidMiss

Burlington, Gulfport, & Keithsburg

Happy Spring Planting! In This Issue

Welcome to the first edition of the ADM Mid-Miss newsletter! Hopefully we have put Now Enrolling: 1X2 Price Floor
the colder than normal weather behind us for the year as temperatures the last couple
Contracts
of days have finally made it feel like spring in Southeast Iowa and West Central
Illinois. Although we’ve had some challenging weather across the Midwest, which MidMiss Conditions Update
certainly slowed the start of corn and soybean planting, it appears progress will Dan Bowman
actually be ahead of normal pace for both corn and beans from a historical standpoint.
It’s amazing how quickly things can change in today’s agriculture world as those of Team Spotlight
you involved in production ag in the United States are some of the best in the world for Meet Zack Brown, ADM Trade
production and efficiency. We can sure get the job done! Manager

-Dan Bowman Regional Manager, ADM MidMiss Key Dates

Join us for lunch later this month!

Why Planting May Be the Best Time to Sell

Don’t get too busy to jump on spring markets.
By Doug Roose, Director of ADM Producer Origination
In just a few days, you’ll be pulling
overtime to get your crop in. But in many
years, spring is also a great time to sell
grain. Don’t put the cart before the
horse—or in this case, the planting
before the selling!
Before you get too busy, sit down and
set price targets. Whether you total your
expenses, use past-year averages, or
base it off your crop insurance, setting a
goal leads to discipline. In fact, decide
on two numbers: what you’d like for a
price, and what you need to break even.
Second, share those targets with us. We
have lots of ways to go after them. If you
start by making an offer, that offer gets
your targets into our system.
Price Daily paired with
an Accumulator is a
flexible contract for
spring, when you’re
really busy.
That way, we can alert you when a
particular contract is closer to your goals
than the market is by itself.
A rule of thumb is to have 20 to 30
percent of your new crop sold by
planting—more if the markets are
favorable, like they’ve been lately for
soybeans. Here are some pricing
methods to consider:
Price Daily – Customize a window of
time this spring and capture the market’s
average price during those weeks.
Accumulator – Get a futures price that is
typically higher than the current
market—provided you’re willing to sell a
premium to today’s market at a specific
trigger point. An optional guarantee adds
protection if the market falls.
Basis or Hedge-to-Arrive (HTA) – Free
up cash by selling and delivering grain
on a Basis contract, and set the futures
later. Or, lock in the futures price today
on an HTA. The remaining basis part of
the transaction is set before delivery.
Cash – Turn your offers into a sure thing
by accepting a firm price for future
delivery.
Contracts can sometimes work better in
combination—such as Price Daily paired
with Accumulator. The averaging feature
gets you a good time frame, yet you can
still price out early, or price out of the
average if your Accumulator target is
reached.
Still selling old-crop bushels? Cash
offers work well. Or use Price Daily
again, especially paired with a Basis
contract. You’ll move grain for cash, but
an average feature on through May or
June will still capture the spring
opportunity.
Once you know your price targets and
time frame, we’re here to help. Call on
us for help to build your plan—or to
simply help execute the plan that you
already have in place. With some
bushels working in the market, you can
tackle spring work with greater peace of
mind.
Now Enrolling: 1x2 Price Floor Contract
With planting season well underway, and fall markets looking appealing, you may want to
reduce risk by selling more new crop bushels. If current markets are just shy of your targets, or
you’re holding off for a better selling opportunity. Consider a 1X2 Price Floor Contract.
If you like where the markets are at, If the market closes above the ceiling
but still want to maintain some upside price on the futures pricing date, the
potential, a 1X2 Price Floor Contract is producer has 2X the contracted
something to consider. amount sold at the ceiling price.
If the market closes below the floor To learn more about 1X2 Price Floor
price on the futures pricing date, the Contracts, just give us a call!
contracted amount is sold at the price
floor We offer a complete portfolio of
grain marketing options including
If the market closes between the floor flat price, basis only, hedge to
price and ceiling price on the futures arrive, deferred price, and put/call
pricing date, the contracted amount options. Stop in and visit with us
sold at the market price. anytime.

Example Sceario 1: Lower Sceario 2: Slightly Sceario 2: Drastically Sc

Markets Higher Markets Higher Markets
November Futures On 07/27/2018 November On 07/27/2018 November On 07/27/2018 November
Floor Price $10.40 futures close at 10.05 futures close at 10.85 futures close at 10.95
Ceiling $10.90 Because the market closed
between the floor price and
Futures Pricing Date 07/27/18
ceiling price, your take
Contracted Bushels 2500 advantage of the upside!
Service Fee -$0.00

2500 bu Sold for 2500 bu Sold for $10.85 5000 bu Sold for
$10.40 (+ or – (+ or – basis) $10.90 (+ or –
basis) basis)

Useful Market Resources

Grain markets change daily. For up-to-date information, go to:

Cash grain markets & your account info:

www.ADMFarmView.com

Your contract performance:

www.ADMadvantage.com
Most recent supply-and-demand reports:
USDA: http://www.usda.gov/wps/portal/usda/usdahome?navid=AGENCY_REPORTS

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Mid Miss Spring Update

On the river to this point, we have had our challenges to say the least. Beginning early last fall, the barge
transportation system has been stressed from about every angle possible. First it seemed an extremely large amount
of carryover 2016 crop that was marketed later in the year, keeping us busy right up into the start of fall harvest 2017.
Then we saw hurricanes sweep through the Gulf and along the Florida coastal areas that eventually dumped massive
amounts of rain in the southern US and greatly slowed the Delta soybean harvest. At the same time, the Illinois and
Ohio rivers systems began experiencing a drop in water to unprecedented levels that created major issues at many
locks and dams along the channels. All this created havoc last fall in the barge transportation system that caused a
quick spike in barge freight which was not helped by a massive 2017 harvest and an export program that already had a
full pipeline. This all created extraordinary basis weakness and large carries in the markets that made merchandising
grain somewhat difficult for many if storage was not available at the time.

Fast forward to 2018 and we have now seen a historic drought in Argentina and challenges in the US river grain
transportation system starting in mid-late February, caused by flooding on the entire Illinois River, Ohio River, the lower
Mississippi River, and eventually the Gulf of Mexico where many grain ports struggled for a short period of time
offloading barges and loading vessels for export destinations. The timing of all this hit the river system at about the
same time that northbound barge shipments seasonally increase and, simultaneously with the upper Mississippi River
opened up for navigation. And oh yes, there is also the fact that we have seen roughly a 3.2 million bushel increase in
Mississippi River exports in 2018 vs 2017 due to an uptick in world demand for US corn and a relatively large wheat
and soybean program even though the numbers are down in 2018 versus last year for those two commodities.

So as you can see we have experienced more volatility on the river transportation logistics in the last 9 months than we
may have in any other period of time. Fortunately in our area of the world, we just have not seen the river
issues……yet. Why do I say yet you say? As of today, the National Weather Service is predicting us to see river
levels rise in the next week to 16.2’ in Burlington and 15.20’ in Keithsburg—both over flood stages of course. Late
snows in the north and finally some precipitation in the Midwest and here we go with rising waters. We will hope for the
best.

I have spent a lot of time talking about overall conditions in this newsletter. This is certainly relevant for us here on the
Mid-Miss. We have seen reduced barge availability which increases our cost for transportation and, even though we
may have barges bought into our position to load all the grain we have purchased, the timings of those barges have
been very inconsistent to this point. It does feel as though the system is returning closer to normalcy as of this writing
but we are not there yet.

Please continue to bear with us with our reduction in overall hours of operation and our inconvenient periods where we
have to close altogether for one commodity or the other. We do not like to operate in this fashion—we want to be as
wide open as possible and running at the highest speeds possible at all times. Again thank you for your patience over
the last couple months and we greatly appreciate you sticking with us. If you ever have questions or concerns about
what is going on at any of our facilities, we would gladly have those conversations with you to the best of our ability at
any time.

I hope you enjoy our newsletter. I would like to thank Emily Benjamin for putting this together for us. She is doing a
fantastic job! We intend to make this a monthly publication that you all look forward to receiving. Thank you for your
continued business and thank you for relationship you have allowed us to build with you through the years. We look
forward to what is to come and please be safe in all you do. -Dan Bowman Regional Manager, ADM MidMiss

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With Safety in Mind: MidMid Facilities Reminder
· Tune to CB channel 3 at Burlington to be in touch with anyone
on the property.
· No smoking in or around your truck on ADM Property.
· Please stay in your truck on the property unless otherwise
instructed.
· Do not park on the train tracks that cross the property as they
are active.
· Please drive slowly around the facilities 15 MPH or below.

· Refrain from using your cell phone on ADM Property.

· After you pull off of the scale, be sure the information on your ticket is correct.

· As we begin to pick up the ground piles, please be on the lookout for extra truck traffic coming through the
line and yield to them.

We thank you for helping us ensure

the safety of our staff, visitors, and
valued customers!

KEY DATES
May 10
World Agricultural Supply and Demand Estimates
(WASDE) Report
Each Monday @ 3:00 pm
USDA Crop Progress Report
May 25
Cookout for drivers & customers
Drop in over the noon hour for grilled lunch and sides! TEAM SPOTLIGHT
Meet Zack Brown,
ADM Trade Manager
HOURS AND CONTACT INFO
Born and raised
The Merchandising Office is open 7 a.m. – 5 p.m. Ekron, Kentucky
Monday – Friday
Other ADM Locations
Phone: 319-753-2858 New Madrid, MO & Memphis, TN
Email: Emily.Benjamin@adm.com Family
Many of our merchandisers are available by cell phone 24/7. Ask for Wife Brittnye & 2 dogs
the number of your ADM representative!
Hobbies
Hunting, Fishing,
ON THE LIGHT SIDE Favorite part of job
Connecting customers to a global
"People who make us happy tend to be the gardeners of our marketplace for their crops
souls. Make certain you are surrounding yourself with those who
are pulling weeds and not creating the drag on yield." - Rick Grain marketing tip
Polad Put in firm offers and be
disciplined!
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