Arkansas Corn Growers Association
Transcription
Arkansas Corn Growers Association
Arkansas Corn Growers Association Jonesboro, Arkansas – Cooper Alumni Center Introduction and Agenda Brian Semple • Bunge Little Rock • Domestic Merchandiser “U.S. farmers supply 41.56% of the world’s corn” “The average U.S. farmer feeds 155 people across the world” • Bunge wants to be a partner with you in this process “Farmers are a direct lifeline to more than 24 million U.S. jobs in all kinds of industries” Source: www.americasfarmers.com • Thank you for all you do! Arkansas Corn Growers Association Agenda • • • • Bunge Global Presence Bunge Arkansas Presence Bunge’s History Domestic Program – Bid / Basis Structure • US Corn Supply & Demand • Current Market Structure – Q&A A Leading Global Agribusiness & Food Company Key Facts Revenue: $46 Billion Employees: ~32,000 Facilities: ~400 Countries of Operations: 30+ Agribusiness • A global leader in oilseed processing • A global leader in grain and oilseed marketing Sugar & Bioenergy Food & Ingredients • 21 mmt sugarcane milling capacity producing sugar, ethanol and electricity • Leading producer of oils, margarines & industrial fats in the Americas and Europe • #2 in global trade and distribution • Growing oils position in Asia • Leading corn and wheat miller in the Americas Arkansas Corn Growers Association Fertilizer • Fertilizer operations in Brazil, Argentina and the U.S. • Joint venture with OCP in Morocco Bunge’s Presence in Arkansas • Mississippi River Facilities – Huffman, Osceola, West Memphis, Helena, Desoto Landing • Arkansas River – Pine Bluff, Linwood • White River – Newport, Augusta, Des Arc, Clarendon, St. Charles Arkansas Corn Growers Association …a nearly 200 year history Purchases edible oils company Walter Rau in Germany Builds largest U.S. soybean crushing and refining plant J.P.G. Bunge founds Bunge & Co. in Amsterdam Establishes operations in Argentina to trade grain 1859 1818 1905 1884 Builds first soy processing plant in U.S. 1938 1918 Moves headquarters to U.S. and creates international Opens first soybean marketing processing unit plant in China Makes first export of soybeans from Brazil Starts business in North America 1997 1967 1945 70s & 80s 1999 1998 2002 2001 Relocates to Antwerp to trade commodities Arkansas Corn Growers Association Diversifies along the food production chain 2009 2007 2005 2008 2010 Purchases Santa Juliana sugarcane mill in Brazil Enters Brazilian fertilizer market with purchase of Serrana Expands into Brazil and enters the wheat milling business In Brazil, sells fertilizer nutrients business and adds five new sugarcane mills with Moema purchase In Brazil, purchases soy processor Ceval and begins acquisition of new fertilizer brands Purchases Cereol to become the world’s largest soy processor Goes public on NYSE and becomes Argentina’s leading agribusiness company Begins building an export terminal in the U.S. Pacific Northwest and a crushing plant in Vietnam Bunge domestic feed grains program Poultry Feed Mills Livestock Feedlots Pet food mills Bin Direct Program • Delivered Mill Bid – Capitalize on freight spread by hauling yourself @CU2012 Daily Chart(DTN ProphetX) • FOB bins bid Arkansas Bushels harvested – Bunge arranges freight from onfarm storage 100,000,000 90,000,000 80,000,000 70,000,000 60,000,000 50,000,000 Bushels 40,000,000 30,000,000 20,000,000 10,000,000 0 2007 2008 2009 Source: USDA Arkansas Corn Growers Association 2010 2011 • Traditional contract types • Capitalize on Bunge’s customer service – We want your business. Basis / Bid Structure Domestic Market – Bin Direct • CIF NOLA values – Function of supply and demand of river / global market • Barge Freight • Truck Freight • Competition (Rail, other feed sources) • Time Frame • Volume Arkansas Corn Growers Association River / Export Market • CIF NOLA values – Function of supply and demand of river / global market • Barge Freight – Values relative to current market bid and ask side • Competition • Time Frame • Volume CORN - US BALANCE mln bushels SEP/AUG Planted Acres (Mln Acres) Harvested Acres Percent Harvested Yield Bu/Acre 07/08 93.5 86.5 93% 150.7 08/09 86.0 78.6 91% 153.9 09/10 86.4 79.5 92% 164.7 10/11 88.2 81.4 92% 152.9 11/12 91.9 84.0 91% 147.1 Beg. Stocks Production Imports Total Supply 1,304 13,038 20 14,362 1,624 12,092 14 13,729 1,673 13,092 8 14,774 1,708 12,447 28 14,183 1,127 12,358 15 13,500 FSI 4,387 3,049 1,338 5,913 2,437 12,737 5,025 3,709 1,316 5,182 1,849 12,056 5,961 4,591 1,370 5,125 1,980 13,066 6,428 5,021 1,407 4,793 1,835 13,056 6,405 5,000 1,405 4,600 1,650 12,655 1,624 12.8% 47 1,673 13.9% 51 1,708 13.1% 48 1,127 8.6% 32 845 6.7% 24 FSI for Fuel FSI non for fuel Feed and Residual Exports Total Use Ending Stocks Stocks to use% Stocks in Days of use Source: USDA Arkansas Corn Growers Association The Current Market Domestic Market • Can ethanol compete on its own merit without the subsidies? • Margins in meat industry / Rationing demand / Cheaper energy sources • Planting/Acreage – Switching other commodity acreage over to corn – Last 2 years for corn growing in U.S. has been historically bad. Will it come back with greater acreage and yield? • USDA reports – March 31st • Volatility in Cash and Futures market persistent Global / Export Market • U.S. – Export market competing with new major players in traditional markets – Corn acreage for U.S. 2012/13 crop • South American weather – Argentina major competitor with U.S. market flow – Has the market already priced in the weather/losses for South American corn crop • Ukraine – Bread basket of Europe, becoming major exporter to traditional U.S. markets • China – Exports increasing year on year – Will they come into buy for the 2012/13 crop as in past years Arkansas Corn Growers Association