Gro has launched the Supply Location Monitor, a new app that uses Gro’s advanced yield models to provide buyers and sellers with local crop yields, production, and prices for specific production facilities. Currently, the Supply Location Monitor covers corn, winter wheat, and soybeans in US Corn Belt states.
With the Supply Location Monitor users can map current season crop production surrounding a specific grain facility as well as historical crop production available to that facility. Our new app also shows cash grain prices (both spot and new crop forward) within a customizable radius around the facility.
The Supply Location Model gives Gro users:
Daily updates to supply forecasts driven by Gro’s yield models, paired with spot and forward cash grain prices, which can help companies make better purchasing and investment decisions
Historical yield, production, and cash grain prices
Insight to what competitors are paying for grain at the facilities that they use
An early read on feedstock availability based on Gro’s district-level yield forecasts
The ability to compare feedstock costs to a specific production facility for a specific crop at various distances from the plant
For example, using the Supply Location Monitor and Gro’s yield forecast models, agricultural bank lenders and relationship managers can gauge crop production at the district level six months before the USDA releases its annual yield data.
To ensure that inventory is up-to-date and properly valued, Gro’s Supply Location Monitor includes DTN’s daily spot cash grain bids. Agricultural bank lenders and relationship managers can also use Gro’s Supply Location Monitor to gain insight into the forces that are impacting their farming clients’ financial health.
Well before a harvest, agricultural banks need to monitor the production capabilities of grain companies so that they can understand their grain company and farmer clients’ end of season cash flow needs as well as their needs for the next crop cycle.
The Gro’s Supply Location Monitor can help by producing local and regional crop production and cost assessments, estimating crop transportation costs, and showing historical facility-specific production costs. Armed with the Supply Location Monitor’s outputs an agricultural bank lender or relationship manager can see and understand the interplay between a region’s in-season yield and price forecasts, transportation costs, and production costs, as well as a region’s typical addressable market.
Until now, agricultural bank lenders and relationship managers have not had access to a systematic approach for understanding supply availability and prices in these micro-regions. They have had to gather this information manually through anecdotal data collection, or they have had to wait until the following spring to understand county-level yield variation when the USDA releases its complete production dataset.
Our Supply Location Monitor app modernizes and streamlines this process. Our app uses Gro’s yield models, which supply it with satellite data that provides daily county-level yield projections, as well as Gro’s objective pre-harvest crop production estimates. Using prices provided by DTN, Gro aggregates the bid prices from across the Corn Belt and links these prices to the production in the area surrounding each facility.
Agricultural banks can also use the Supply Location Monitor post harvest, when tracking local supply and demand dynamics and market prices to accurately value a grain company’s inventory. Whether your business is in banking or buying and selling crops, the Supply Location Monitor can help you make quicker, more accurate decisions that can save money and improve profitability. Gro’s Supply Location Monitor, which is currently the only app that provides market participants a systematic and unbiased view of local production and price, is available to Gro users on a subscription basis.
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