C R E A T I N G
P A R T N E R S H I P S
I N
A G R I C U L T U R E
this issue
P.1 Improving Customer
Service
P.2 Market Update
**
GrainLink
ISSUE
05
AUGUST
2014
CGB’s Commitment to Improving Customer
Service
Jason Selking, Manager of Business Development
Hello again from Business Development!
We have been very busy this spring and
summer working on improvement and
expansion opportunities. Since the last
newsletter, CGB has made another major
acquisition and is preparing to open
another new elevator.
Regional Insert
P.3 Building Global Sales
P.3 ZEN-NOH Shiki
P.4 Premium Grains S M
P.5 Community Safety
P.5 Walton, IL
Enhancements
P.6 CGB—Diversified
Services
P.6 CGB-AGRIfinancial
P.7 Contracting Options
P.7 Safety: PPE
P.7 Survey
New CGB facility in Meade County, KY
CGB has been actively working to expand
and diversify the footprint of its grain origination facilities. Along those lines, it is
with great pleasure that we welcome the
customers and employees of W.B. John-
ston Grain Co. to the CGB fold.
W.B. Johnston Grain Co. was an iconic member of the OK grain industry, noted as the oldest and
largest privately owned grain company in the state. Included in the transaction were 19 grain facilities
that spread across both OK and TX. Closing on the acquisition was completed in April. Many of
these facilities also market fertilizer, seed, and application services to their local producer customers,
in addition to handling a significant volume of other bulk commodities for the oil and natural gas
industries. These facilities complement CGB’s existing river terminal at Port 33 (near Tulsa, OK), as
well as provide access to a broader spectrum of hard red winter wheat origination and deeper insight
into the TX livestock industry’s corn demand.
Prior to harvest, CGB will open its newest facility along the Ohio River near scenic Brandenburg,
KY, in the Meade County Riverport. Plans for an elevator began as far back as 2003 when CGB and
the Riverport Authority began discussing opportunities. The state-of-the-art facility is designed with
customer service and future expansion in mind. Customers will benefit from significantly reduced
transportation costs delivering grain to market and reduced unload times, thus allowing trucks to
return to the field timelier during harvest. CGB looks forward to introducing regional customers to
its high standard of service, as well as becoming a more significant participant in the local ag industry.
Stay Connected!
We are continually developing additional capital projects that will improve our level of customer
service and expand CGB’s grain origination footprint. Stay tuned for more exciting details in the
months ahead!
Page 1 | CGB GrainLink | August 2014
Market Update: “Holy Cow!”
Dan Zwicker, Market Analyst
Back when I was in 4-H
and showing cattle,
another 4-H participant
from Spencer, Iowa
picked out a steer from
his father’s purebred
Angus herd. It clearly
Screenshot of Dan Zwicker, Market Analyst, perhad all the makings of a
forming daily Midday Market Update on CGB’s
youtube channel (link below):
winner. All the cattlewww.youtube.com/cgbmarketinfo
men with an eye thought
the steer had the best potential of any steer they had seen to
become an International Grand Champion Steer. With the
excitement that he may have a steer that could become an
International Grand Champion, he shouted out “holy cow!”
and that became the name of his steer. The consensus was
right, and the following year that calf became Chicago’s
International Grand Champion steer. It was a small, short
legged steer that weighed in at 925 pounds, and it sold for
$25 per pound, a mere smudge of what today's Champion
steers bring and, of course, was much smaller than today's
1400 pound champions.
I used the story above as an example of how this year’s
consensus opinion was right in that the 2014 crop was going
to be a big crop. USDA came out of the chute in May and
published a 165 bushel trend line yield for corn which, if
attained, would be a record. The trade bought into USDA’s
projection hook, line, and sinker and bet the farm on the
daily price reversal down December corn futures traced out
on the day of the report and never looked back. After
several years of failing to attain USDA’s trend line yield, the
odds were right to bet on a trend line yield based upon
statistical averages. Despite a few wet areas around the growing region, every seed germinated and the crop kept getting
bigger and bigger. No weather scare hick-ups as the cool and
wet spring continued into July, so the crop was never put
under any kind of stress. The corn plant loved it so much
that crop rating levels climbed contra-seasonally higher
during July.
Yield checks taken during late July/early August suggest the
national average yield for corn will top USDA’s 165 level
and could push over the 170 mark. Soybeans look good but
still a few more weeks of favorable growing season weather
before the trade can become comfortable with a national
average yield above USDA’s 45.2 estimate. A national averPage 2 | CGB GrainLink | August 2014
age corn yield above 170 bushels for corn would definitely
qualify for the “holy cow!” expression of excitement. The jury
is still out on whether the national average soybeans can bust
above USDA’s 45.2 bushels per acre estimate. The crop
needs a good rain to put the finishing touches on the soybean
crop. Unfortunately, while this year’s record production is exciting, the other side of the story includes lower prices; that’s a
big downer. Hopefully more bushels than expected will make
up for the lower price and the revenue per acre will keep
producers in the profitable column.
Going into harvest, the question at hand is how low is low for
corn and soybean prices if the crop is as big as the trade
projects. I rely on technical analysis, chart formations and
cyclical time counts to visualize price movements that could
materialize over time. There are many techniques to use in
projecting targets, but in this article the chart gap that was left
after July 4th weekend is being used as a measuring gap to
come up with downside targets. For those of you that may not
know, a measuring gap is the half-way point of a bigger move
in the direction the market is trending. Using the chart gaps
left on the weekly December corn chart points to a downside
objective of 3.08 while the gap on the weekly November soybean chart points to a downside target of 9.82 1/4.
No guarantees, just numbers. We still have to get past an early
frost to shore-up downside price risk vulnerability if indeed
the crop is one of those “holy cow!” experiences.
Naples, IL Region Round-Up
Employee Spotlight
Brian Steele, Grain Merchandiser
Brian Steele was born and raised in Baton Rouge, LA, and
graduated from Louisiana State University with a degree in
Agricultural Economics.
In April of 2012, he started his career with CGB as a Merchandiser Trainee working at our Riverside location in
Cincinnati, OH. About a year ago, Brian moved to our
Gladstone, IL office where he currently works with our
Mid-Miss Region as a Merchandiser.
Brian’s interest in commodities started in college. He
became passionate about learning every aspect of the market and the factors that drive it. “As a grain merchant, I enjoy all of the different tasks
each day brings and challenging myself with creating marketing plans for producers to
help make their operations more profitable. I also love the competitive atmosphere and
the opportunity that I have to continue to learn and grow, as a professional with CGB,”
said Brian.
Contact Us!
Merchandisers
Naples, IL
Brett Rohlk-Ext. 212
Matt Hubbert-Ext. 256
Chris Vogler-Ext. 228
Kody Mefford-Ext. 213
Phone 800.252.7711 or 217.754.3331
Greenfield, IL
Stuart Twitchell, Manager
Christy Ford
Phone 217.368.3031
Farmersville, IL
Larry Lucas, Manager
Phone 217.227.3272
Smithshire, IL
John Twomey
Phone 309.325.7200
Brian and his wife, Jamie, have a one year old son named Landry. They are very
dedicated fans of LSU football, baseball, and the New Orleans Saints.
Colusa, IL
Burnside 217-746-3221
Ferris 217-746-3771
Colusa 217-755-4221
Wever 319-372-7852
Sam Sardesai, Grain Merchandiser
Nauvoo 217-453-2216
Sam Sardesai is a Purdue University graduate from Dallas City 217-755-4221
Bloomington, IL, with a degree in Agricultural Business Gladstone, IL
Management. He has been part of the grain industry for the Austin Twomey, ext. 4808
past year and a half working as a grain merchandiser.
Brian Steele, ext. 4813
Jay Day, ext. 4812
Previously Sam worked with ADM and recently joined CGB at Ken Quinn, ext. 4809
our Gladstone, IL facility. “I enjoy working with producers and Ryan Horsfield, ext. 4806
helping them achieve their goals by studying the grain markets Phone 855.643.6477 or 309.457.4800
and working closely with operations. I am thrilled to be a part
CGB and am looking forward to having a great harvest!” said
Employee Spotlight
CGB Mid-Miss Region History
Andrew Leonard, Grain Merchandising Intern
In line with its goals of expansion, CGB recently developed the Mid-Miss Group of elevators, located in Illinois, which is made up
of CGB’s former Colusa Group, Twomey Group, and two additional CGB facilities. This development began in 2005 with the
purchase of the Oquawka river barge loading facility, followed by a leasing agreement for the Gladstone Junction elevator in 2006
and purchase of assets from Colusa Elevator Company and Twomey Company both in 2011. CGB merged these groups of
elevators in June of 2013 into one operating group known as the “Mid-Miss Group.” This impressive group of elevators is now
headquartered in Gladstone, IL.
Naples IL | CGB GrainLink | August 2014
Building Global Sales: Visit to Korea
Nathan Reding, Feed Grain Trader—Zen-Noh Grain Corp.
As you know, CGB is a large originator of Non-GMO grains.
We make many visits abroad throughout the year to various
countries in order to get face to face with our customers,
discuss their longer term business needs, and gauge market demand and effect it will have on our markets here in the U.S.
A few months ago, CGB representatives made a short trip to
Tokyo and Korea to talk with buyers of Non-GMO corn.
Our trip to Korea included a one day visit to the port of
Pyeongtaek located in South Korea. This newly finished port is
literally a part of the sea that has been converted into an island
with a very large storage and discharging silo built onto it. Korea is very crowded with almost half the population living in the
Man-made creation, Pyeongtaek Port, in South Korea for port operations.
cities in and surrounding Seoul. Therefore, land is extremely
valuable and not available for large projects such as this. The Pyeongtaek port is very near to the large city of Seoul and is expected
to help manage the logistics of delivering grain to a growing economy.
The rest of our visit was spent working with the four major grain buying companies in
Korea that all use CGB originated Non- GMO YC and YSB. These visits are useful as
we get a chance to explain to buyers the need for forward planning in their logistics
and demand so that we can be sure to secure the product that they need.
This year in particular, the export market for all grains will be very busy with the large
YC and YSB crops that are growing coupled with the fact that U.S. prices are very
competitive on the world market.
Stay tuned for further updates on travel abroad and building global sales!
ZEN-NOH Opens Restaurant in Beverly Hills, CA
Kelly Buchanan, Marketing & Communications Manager, Grain Division
ZEN-NOH has successfully opened its first U.S. restaurant, Shiki, in
Beverly Hills, CA to serve traditional Japanese cuisine! Shiki, a Japanese
word meaning four seasons, is located in an upper-class residential area and
serves high-quality Wagyu beef.
Traditional Japanese cuisine, also known as “Washoku,” respects the natural
beauty of changing seasons through use of seasonable, wild ingredients. It’s a
practice based on a set of skills, knowledge, and traditions related to the production, processing, preparation, and consumption of food. The practice
Shiki website homepage, www.shikibeverlyhills.com
favors the consumption of various natural, locally sourced ingredients such as
rice, fish, vegetables, and edible wild plants. At Shiki Beverly Hills, each dish is “treated as an expression of life itself, never forgetting how much we owe nature.”
To learn more, visit Shiki online at www.shikibeverlyhills.com. No passport required!
Page 3 | CGB GrainLink | August 2014
Premium Grains Program Highlights
SM
Stefani Hasselbring, Market Development Logistics
Visit Premium Grains on YouTube!
youtube.com/cgbpremiumgrains
CGB would like to remind growers about the expectations with Premium GrainsSM during post planting, harvest,
transportation, storage and delivery along with some recommended practices.



Post-Planting
 Complete PG application with all hybrids/varieties and acres planted.
 Communicate any production changes to your CGB representative.
Communicate storage and handling plan with all employees.
Label bins and handling equipment.
Scout fields for weeds, insects, and presence of other commodities (volunteers).
Harvest
 If GMO corn hybrids planted within 50 feet boundary, harvest the border rows separately and market the harvested crop as
commodity corn.
 Clean the combine, bins, and equipment.
 Adjust the combine for best grain quality.
 Avoid rocks and dirt when harvesting. This includes combining, transport and storing of the crop.
Transportation and Storage
 Record which fields (hybrid/varieties) went to which storage bins.
 Use bins with good aeration - field dry corn when possible to maintain grain quality.
 NO chemicals to be used in storage units - use diatomaceous earth products (Protect-It® or INSECTO)
 Clean truck hoppers/beds.
 Scout fields for weeds, insects, and presence of other commodities (volunteers).
 Visually inspect storage and hauling units to be sure that they are clean.
 Communicate commodity and Identity Preserved status to driver.
Delivery
 Inform drivers as to Identity Preserved status of loads.
 Inform drivers as to the specific hybrids/varieties being delivered.
 Be sure to communicate to the CGB Probe/Scale personnel the Identity Preserved Status.
 Use the CGB-IP protocol system for proper Identity Preservation.
New Website!
Kelly Buchanan, Marketing & Communications Manager
We are pleased to announce the launch of our new website, designed with a fresh new
look and user-friendly navigation and updated with the latest information about our
products and services.
Included in the many upgrades are a sleek new home page with quick link to
CGBOnline on the access bar, a brand new careers section, and an updated and
interactive locations map that now showcases locations for each of our business units/
divisions.
These are just a few of the many changes you’ll notice during your next visit to www.cgb.com. Enjoy!
Page 4 | CGB GrainLink | August 2014
CGB Makes Investment in Community Safety
Kelly Buchanan, Marketing & Communications Manager, Grain Division
Taken from original news
release submitted and
published in local
news outlets April, 2014.
CGB Scott City, MO recently purchased a RES-Q Tube unit and conducted training with its local
emergency personnel for community-wide use in the event of a grain entrapment or engulfment
emergency.
The training, conducted on Saturday, April 26, at CGB’s facility, included CGB personnel, the local
fire department, as well as other emergency responders and community leaders. Proper hands-on
training is required for safe use of the equipment, which is designed to stop the flow of the grain
toward the victim and block any additional pressure that may be created from rescuers.
“We spend a tremendous amount of time and effort ensuring our employees are operating in a safe
manner and that they understand how to avoid situations that involve the potential for collapsed
grain. We’ve made this investment to further increase the awareness and safety at our facility and
RES-Q Tube Training at Scott City,
within the community, should an emergency ocMO
cur,” said Kurt Hasty, Regional Operations Manager for CGB. “Of course, we hope we never have to use it.”
CGB intends to make the unit available to local emergency personnel should
they have use for it within the community. “We hope that our investment can be
used to rescue other members of our community should the need arise,” said
Hasty.
The RES-Q Tube units are manufactured by GSI Group and on-site training
sessions were conducted by The Safety and Technical Rescue Association
(SATRA).
RES-Q Tube Training at Scott City, MO
Big Enhancements at Walton, IL Facility!
Matt Cessna, Central Group Manager
We are planning big enhancements at our Walton, IL facility to be completed in time for fall harvest! The
renovations began in 2013 following the devastation of a storm, and we plan to complete the additional
enhancements by September, 2014.
On Monday, June 24, 2013 at 4:30 p.m., we took shelter in the office and watched as straight line winds
destroyed our elevator at CGB-Walton. Fortunately, there were no injuries and the office suffered just a few
missing shingles. The elevator, though, was nearly a total loss as we were only able to salvage the grain dryer.
Matt Cessna
Thanks to the hard work of our CGB staff and our general contractor and
millwright, we were able to open our doors just four months after the devastation.
Renovations and upgrades completed in 2013 included the installation of two
20,000 bushel per hour grain legs and the completion of one dump pit. Trucks
spent an average of six minutes on our lot, and lines were never an issue last fall.
Our exciting plans for the 2014 enhancements include doubling storage space,
adding another wet bin which will nearly triple our wet holding capacity, and
completing a second dump pit which will provide 40,000 bushels per hour
dumping capacity. Once completed, these upgrades will make CGB-Walton one
of the fastest country elevators in Northern Illinois!
Page 5 | CGB GrainLink | August 2014
Walton, IL Facility
Diversified Services Updates
DS Marketing Department
Diversified Crop Insurance Services (DCIS) continues to delve into the intricacies of the new Farm Bill. As with any Farm Bill,
there were numerous changes and the rules have created some good questions from farmers all over the U.S. Our Farm Bill
Resource Team has been actively researching and reviewing additional changes and rule interpretations provided by the RMA and
Congress. Our experts are traveling the country meeting directly with agents and their customers and answering their questions
regarding how these changes will affect their operations. If you have questions regarding the Farm Bill, give us a call.
Additional growth news from DCIS: On December 30, 2013, CGB Enterprises (DCIS’ owner) purchased United National
Casualty Insurance Company (UNCIC). This event was a huge moment for our company and it shows a commitment by CGB to
invest and commit to the crop insurance industry for years to come.
UNCIC is now known as CGB Insurance Company (CGBIC) and this entity will serve as the policy issuing company for DCIS in
the years to come. This company is an A-Excellent rated company by AM Best and its capitalization by CGB provides firm
financial foundation for our future together.
Existing and new policies transferred seamlessly for the 2014 crop year. We filed our plan of operation with the RMA to have
CGBIC become the “SRA holder” beginning with the 2015 crop year. The RMA has accepted CGBIC as an “Approved
Insurance Provider” for the 2015.
“Our investment in our future means that we will be here long term to service you well into the future,” CGB-DS Vice President
Rod Clark proudly shared.
Making Investments in Farm Infrastructure
Bill Medley, National Sales Manager, AFS
Buildings, bins, irrigation, tiling. No
doubt about it, longer term land
improvements are more popular this
year because bonus depreciation rules
were changed at the end of 2013, eliminating most of the tax benefit farmers
have gotten from investments in rolling
machinery over the past few years.
Bill Medley, Sales Mgr
Investments in these assets, especially
when lease financed, can continue to bring large tax benefits
because most of that expense (90%) can be deducted in seven to ten years.
The truth is new, larger equipment has sometimes outgrown
older structures that were never built to hold the size of
planters and combine heads today.
In the Red River Valley of ND, producers are putting lots of
dollars in tiling land. Perhaps that’s due to two successive
years of wet weather, late planting and ongoing water issues.
In the south, grain bin storage has continued at a rapid pace,
catching up with the southern movement to more and more
corn acres. And in the Midwest, farmers seem to be investing
in center pivot irrigation projects and in shops and buildings,
upgrading their facilities after years of muddling through.
If you might benefit from such a discussion, we’re happy to
talk with you. To qualify for deductions, your new farm
assets have to be put into service during this calendar year.
Given construction time and other lead time, it’s getting pretty close to the wire to make those decisions.
Page 6 | CGB GrainLink | August 2014
This re-investment in ag infrastructure is a cause for producers to look at options for financing, and that is stimulating the
discussion of a lease. Under IRS rules, general farm purpose
buildings are depreciable over 20 years. But with a 7 or 10year lease, a producer’s payments are 100% tax deductible.
That means in a much shorter period of time, the farmer is
able to write off about 90% of their investment. Pretty significant when you realize bonus depreciation benefits are gone.
CGB Offers Diverse Contracting Options
Personal Protective
Equipment (PPE)
Blake Early, Market Analyst
From the field to market, our team has an extensive array of tools and knowledge to assist
you in marketing and transporting grain.
Professionally Managed Pricing
With so much volatility in
today’s markets, it can be
difficult to make timely
decisions about marketing
grain. The Professionally
Managed Pricing program is
PMP Pricing Table
designed to help alleviate a
substantial amount of that marketing stress for the farmer, which is one of the major
advantages of pledging bushels into CGB’s PMP program. We understand our customers’
time is invaluable and watching the markets 24 hours a day is unrealistic. With a diverse
and global trading team, we study the markets 24/7, diligently searching for the next best
pricing opportunity.
CGB’s extensive trading network will make unanimous decisions to market your grain and,
more importantly, help you diversify your risk management plan. Our global data sources
and constant influx of information are just a couple reasons we believe the PMP should be
a part of every farmer’s marketing toolbox. We will roll out our first 2015 PMP on 9/1/14
with another to follow on 1/1/15.
Equalizer® Min/Max
Does emotion or nerves get in the way of having a
profitable year? At CGB, we have developed a tool
designed specifically to help reduce the stress of marketing
grain.
Safety Glasses: Consider wearing safety
glasses to protect yourself from impact,
heat, chemicals, dust, and radiant energy (welding and cutting).
Hearing Protection: Exposure to high
levels of noise may cause hearing loss,
reduce productivity, interfere with communication, and contribute to accidents
by making it difficult to hear warning
signals.
Respiratory Protection: Nuisance dust
can cause troubled breathing. Dust
masks can provide protection against
these irritating dusts when working in
dusty environments.
Hardhats: Head protection can be used
to protect against overhead hazards or
falling objects.
Hands: We use our hands every day.
Please take a moment to protect your
hands by using the proper gloves for the
task.
Inspect your PPE for
damage before each use!
Click here for a complete brochure
The Equalizer Min/Max prices bushels incrementally each regarding safety produced by CGB and
day, either at the market price, or at the floor or ceiling our risk management business unit,
price preset by the farmer. If the market falls below the Diversified Services.
floor level, the EMM will price bushels at that floor price
protecting against further losses. Conversely, if the market
rallies above the ceiling level, the
EMM will price bushels at the
predetermined ceiling price, offering
the farmer the ability to capture upside potential. We will offer these in
Please take a quick survey and let us know your thoughts
24-48 hour windows when market opportunity presents itself.
regarding our service and what you’d like to see in the
The simplicity and flexibility of the Equalizer Min/Max make it a great future editions!
We Want to Hear from YOU!
tool to capture the benefits of volatility and reduce a significant amount
Click here, or copy and paste the web address below:
of market risk.
https://www.surveymonkey.com/s/grainlinksurvey
Our team stands ready to answer your questions regarding the best
grain marketing strategy for your farming operation. Partner with CGB
to gain the most value for your grain and oilseeds!
Page 7 | CGB GrainLink | August 2014
Happy Harvest!
5130 Port Road
Jeffersonville, IN 47130
“Creating Partnerships in Agriculture”