CHICAGO, April 30 (Reuters) - Chicago corn and soybean futures rose on Friday after three days of volatile trade following a run-up to eight-year highs, traders said.
Wheat eased, pressured by a strengthening dollar, despite persistent dryness across the U.S. Plains that supports the complex.
The most-active corn futures on the Chicago Board of Trade gained 18 cents at $6.66-1/2 per bushel by 12:03 p.m. (1803 GMT).
CBOT soybean futures rose 19 cents to $15.21-1/4 per bushel. CBOT wheat dipped 1-3/4 cents to $7.27-1/2 per bushel.
"The volatility we've seen is probably going to continue into next week, given that this week's cooling off period hasn't left us with many answers," said Dan Hussey, senior market strategist at Zaner Group.
A chilly start to the growing season in the U.S. Midwest and drought in southern Brazil have exacerbated worries about global supply as Chinese demand remains strong.
Expected rain should improve moisture for early corn growth in the United States in the next two weeks, although cool temperatures could slow germination, the Commodity Weather Group said in a note.
"Weather is the main focus, going forward," said Mike Seery, president of Seery Futures, noting that uncertainty should be supportive to both corn and soybeans. "The commodity markets are just on fire."
Wheat eased but remained in a tight range after climbing to an eight-year high on Tuesday, as a strengthening dollar added pressure to the grain in the world market.
"The rise in the U.S. dollar the last couple days is weighing on the wheat market, at least in the short term," said Hussey. "Global wheat buyers aren't willing to pay these high prices, for Black Sea wheat or U.S. wheat." (Reporting by Christopher Walljasper; additional reporting by Gus Trompiz in Paris and Colin Packham in Canberra)
Burgundy is known for two noble grape varieties: Chardonnay and Pinot Noir. The vast majority of the plantings there are those two varieties, which often command insanely high prices. But there’s more to Burgundy than meets the eye, with a variety of styles produced and grapes other than Chardonnay and Pinot can also create stellar wines, but with incredible value.
Aligoté
One of Burgundy’s “other” white grapes, Aligoté sits in the shadow of its famous relative, Chardonnay, but it is by no means second rate. It’s grown on about 5,000 acres, most notably in the Côte Chalonnaise and the appellation of Bouzeron. Its acidity and frost resistance make it seem like it should be more popular worldwide, though it’s found some success growing in Bulgaria and Romania as well.
Hardy Aligoté is a cross between Pinot Noir and Gouais Blanc. Flavors run the gamut from floral to herbal.
Domaine Ponsot produces the only premier cru Aligoté in Burgundy. Sourced from the Monts Luisants Premier Cru in Morey-Saint-Denis in the Côte de Nuits, it was planted in the early 1900s and still produces grapes from its vines today.
Paul Wasserman, head of U.S. West Coast and Mountain State sales for Becky Wasserman & Co., likes Aligoté because its “energy and brightness gets you off the couch and dancing. It’s the Energizer Bunny of Burgundy.”
Cesar grape vine at Domaine Clotilde Davenne / Photo Courtesy Domaine Clotilde Davenne
César
A cross between Pinot Noir and Argant, a Spanish variety, César is mostly grown in northwest Burgundy in the village of Irancy. Its origins date back at least 2,000 years.
Rarely used as a single variety, it’s sometimes blended with Pinot Noir to add color because of its deep purple hue. Thick-skinned César is also incredibly tannic, so when it’s produced as a varietal wine, it’s done by carbonic maceration, a whole bunch fermentation in an anaerobic environment that makes the grapes ferment inside themselves to create light, fruit-forward wine.
Notable Producer: Clotilde Davenne
Harvested Gamay grapes in Beaujolais, France / Photo by Alamy
Gamay
Beaujolais Nouveau, a red wine made from Gamay and released on the third Thursday in November immediately after harvest, is how many drinkers first experience Gamay. The grape is actually of Burgundian origin, from the Côte d’Or, and dates back to around 900 A.D. and the Cluny Abbey. In the late 1300s, the Duke of Burgundy ordered all Gamay vines to be removed for fear that it would overshadow the much nobler Pinot Noir.
The Maconnais and Beaujolais didn’t get the memo, however, and continued to grow it. Now, the most famous versions of Gamay hail from those southerly regions.
Gamay is a fairly thin-skinned grape like Pinot Noir, and it’s often compared to Pinot Noir in flavor and texture. And like Pinot Noir, it can develop complexity over time.
Paul Grieco, sommelier and owner of New York City’s Terroir wine bar, is particularly fond of Burgundian Gamay. Julien Guillot’s Vignes du Mayne Cuvée 910 “is a piece of Burgundy I get out of bed in the morning for,” he says.
Notable Producer: Julien Guillot
Vineyard of Saint Bris Le Vineux near Auxerre / Photo by Hemis/Alamy
Sauvignon Blanc and Sauvignon Gris
Wines from the Appellation d’Origine Protegée (AOP) Saint-Bris, located around the village of Saint-Bris-le-Vineux, are made from Sauvignon Blanc and Sauvignon Gris grapes. This is the only region in Burgundy where Sauvignon Blanc is allowed to grow. The village is much closer to the Loire Valley in proximity than it is to the heart of Burgundy, and is only nine miles away from Chablis, in the Côtes d’Auxerre region of Burgundy.
Grapes are grown on limestone, much like the rest of Burgundy, and contribute a distinctive minerality to the appellation’s wines.
Bottling Chain, Louis Bouillot, Cremant de Bourgogne / Photo by Jean-Louis Bernuy
Crémant de Bourgogne
An appellation as well as the name for the sparkling wines produced there, Crémant de Bourgogne is Burgundy’s answer to Champagne. Like Champagne, it is made in the laborious traditional method, methode traditionelle, and the dominant grapes are Pinot Noir and Chardonnay, although a bit of Aligoté, Gamay or Pinot Blanc may sometimes be added for good measure. Also like Champagne, various styles abound for any palate predilection: sparkling rosé, Blanc de Blancs from Chardonnay, Aligoté or Pinot Blanc; or Blanc de Noirs made with Gamay and Pinot Noir.
Notable Producers: Bailly Lapierre, Louis Boillot, Veuve Ambal
Racking barrels at Domaine Michel Lafarge / Photo Courtesy Clothilde Lafarge
Passetoutgrains
Passetoutgrains is made by blending and co–fermenting Gamay and Pinot Noir into one well-priced, quaffable wine. Passetoutgrains is also an appellation in Burgundy, decreed in 1937. The area covers nearly the entirety of Burgundy, but Passetoutgrains production is mostly concentrated in the South, near the Mâcon and Beaujolais.
French law dictates that Passetoutgrains must contain at least 30% Pinot Noir and 15% Gamay. Both red and rosé styles are made, and the rosé is made by the saignée method, whereby the red grape skins encounter the clear juice to produce a pink-hued wine.
These days, there aren’t many coplanted vineyards, as they’re typically mapped out by single varieties or in blocks instead. But in one 2.2 acre plot owned by revered Burgundian producer Domaine Michel Lafarge, Gamay and Pinot Noir are indeed grown together and produced using traditional Passetoutgrains methods.
Notable Producers: Domaine Michel Lafarge, Maison Louis Latour
However, corn remains a concern in Brazil, where very little precipitation has landed or is forecast across large parts of the Safrinha corn area, report UK based commodity market specialists, CRM Agri.
Wheat watch
Statistics Canada released their March planting estimates. “Overall, there is a trend towards oilseeds and away from grains. The total wheat area is estimated to be down 6.9% year on year,” noted the analysts.
Meanwhile, Black Sea confidence remains strong, with estimates for Ukraine wheat production in 2021/22 at 27.7MT up from 25.3MT in 2020/21, according to the Ukrainian Grain Association.
Fragility in corn markets
The analysts said storms and precipitation in the US will be welcome, increasing soil moisture and the prospects for US corn; Chicago corn markets have taken a breather this week. “However, potential delays to planting could re-ignite tight end season stock concerns,” they noted.
Global corn markets remain extremely fragile, they commented.
In Argentina, the Buenos Aires Grain Exchange has estimated that the corn harvest has reached 17% harvested, well behind the 34.5% last year and 28% average. Average yields are improving as the harvest progresses, but remain highly variable, reported CRM Agri.
Brazil has remained dry this week with declining crop conditions in key Safrinha [second corn crop] regions, said the analysts.
“The main focus remains Brazil, where the Safrinha corn crop is developing. Following the late planting, a larger proportion of the crop than normal will be developing during the dry summer months, placing a greater importance upon early development. However, March and April have been abnormally dry across large parts of Mato Grosso, Mato Grosso do sul and Minos Gerais, reducing the potential of the second corn crop. Early estimates were for an 80MT crop; in our opinion, this is now too ambitious, and a crop closer to 75MT is more likely.”
Soy story
US soybean markets continue to be well supported, and with the tight US end season stock situation well known, they will remain well supported until the US planting campaign is complete and confidence arrives for next season, said the UK market watchers.
“In the US, the planting campaign is only just getting underway and into the second week of planting. Like with corn, the weather in the US isn’t perfect for crop establishment and development with additional rainfall required. Near 10% of the US soybean area is in North and South Dakota, and like with wheat, there is only limited rainfall due to arrive in the next week.”
In the southern hemisphere, Argentina has harvested near 10% of the soybean crop, far behind average progress, and while yields have been variable, they remain better than the dry La Nina potential, remarked the analysts. “Following record production in Brazil and early signs for better than feared production in Argentina, global oilseed markets are struggling to push higher.”
Beyond soy, a CRM Agri report finds that, overall, Canadian canola planting is estimated to increase by 3.6% this year, undoing the previous year’s reduction in area.
It's not unusual for corn end users to feel the squeeze later in the summer as old crop supplies dwindle. But, as AgweekTV's Michelle Rook and Randy Martinson of Martinson Ag Risk Management discussed on this week's Agweek Market Wrap, that squeeze already is happening.
And that means the price keeps going up.
"The commercials need it, they want it, they're trying to bid for it, but nobody is delivering it," Martinson said.
He expects prices will go up farther, possibly testing the $7.4875 high from 2013 and maybe even the $8.4375 all-time high set in 2012.
While corn was pushing higher, overall the week was another volatile one.
"It was another roller coaster," Martinson said.
Soybeans have taken a backseat to corn, but it remains strong on the demand for soybean oil. Rook said soybean oil's strength is coming from both human consumption and bio energy needs.
Wheat has been following corn and soybeans, but Martinson said drought conditions in both the winter wheat and spring wheat regions has provided some strength.
Cattle, especially feeder cattle, felt the pressure of the strong corn market this week. But boxed beef is at an 11-month high, Rook said, and Martinson said New York's potential reopening in July could charge demand.
Plus, the hog market remains strong on tight supplies, and that should help the cattle market, too, he said.
Here’s a closer look at the precipitation that impacted planting progress in the top corn-growing states the week of April 19 to 25.
Iowa
“We’ve seen improvement in drought conditions across western Iowa,” said Secretary Naig. “Colder temperatures and some late-season snow slowed farmers down last week. However, recent weather patterns have allowed more farmers to get into the fields and a warm and windy forecast should ramp up field activities in the coming days.”
The northwest corner of the state received some precipitation, but not enough to move it out of the severe drought farmers are facing in that area.
As of April 29, nearly 75% of the state is in a drought with 19.5% abnormally dry, and 8% facing moderate drought. According to the April 26th Crop Progress Report, 20% of the corn is in the ground vs. the 22% five-year average in Iowa. Iowa farmers also have planted 6% of the soybean crop vs. the 3% five-year average.
Illinois
The southern part of Illinois received 1 to 1.5 inches of rain last week. However, the northeastern corner is where much of the rain was needed in the state. Nearly 53% of the state is in a drought, with 7% abnormally dry. The drier weather has helped farmers stay on track with corn and soybean planting. As of Monday, 23% of corn is planted in the state compared to the 28% five-year average. The states’ farmers are largely ahead on soybean planting with 18% of beans in the ground compared to the 6% five-year average.
Nebraska
Nebraska is currently facing abnormally dry conditions in a little over 62% of the state. 23% is in moderate drought with 7% facing severe drought. Monday’s Crop Progress Report indicated farmers are quite behind in corn planting with 6% planted compared to the 15% 5-year average. Although, soybean planting is right on target at 3% with the 5-year average.
Minnesota
As of Thursday, April 29, 37% of Minnesota is abnormally dry with 15% in moderate drought. This includes the southern quarter of the state as well as the northwest corner. Nearly 1% in these areas has grown into severe drought. The northeastern corner and part of the south-central area of the state received 0.5” to 1.5” elevating those once dry areas. As of Monday, farmers are on track with corn planting at 18% in the ground compared to the 18% five-year average. Soybean planting is just getting started at 2% in the ground compared to the 1% five-year average.
Indiana
As of Thursday, April 29, 83% of Indiana is abnormally dry with nearly 9% in moderate drought. However, last week brought anywhere from 0.41” to a 0.77” of precipitation across majority of the state. As of Monday, planting has stayed above average for Indiana farmers at 14% compared to the five-year average of 12%. Soybean planting is also above average at 9% compared to the five-year average of 4%.
Kansas
The southeastern corner of Kansas received majority of the rain for the state last week receiving between 0.25” to 1.2” of rain. However, the western third of the state is where 36% of the state is abnormally dry as of April 29. 13% of the area is in moderate drought and nearly 2% has grown to severe drought. According to Monday’s Crop Progress Report, corn farmers are slightly below the five-year average of 27% with 20% of corn planted in the state. Similarly to Indiana, soybean planting is just getting kicked off with 2% planted compared to the five-year average of 1%.
South Dakota
With 93% of South Dakota abnormally dry, 64% is in moderate drought with nearly 20% in severe drought as of April 29, it remains one of the driest states in the Midwest. Besides a few counties along the western border, South Dakota received little to no rainfall last week. However, corn planting in the state is on track at 4% in the ground compared to the five-year average of 4%. Soybean planting is just getting kicked off at 1% planted.
Ohio
Majority of the western half of Ohio received rainfall last week totally anywhere from 0.3” to 2.5” of rain. However, as of April 29, 69% of the state is abnormally dry with 21% in moderate drought. Corn planting is on track according to the Crop Progress Report Monday with 8% of corn in the ground compared to the five-year average at 7%. Soybean planting is well above pace with 8% in the ground as well compared to the five-year average of 2%.
Missouri
The southeastern half of Missouri received significant rainfall last week with totals reaching nearly 3” in some areas. The state has 0% drought as of April 29. However, corn planting is well behind pace at 20% compared to the five-year average of 44% according to the Crop Progress Report Monday. Like Ohio and Indiana, soybean planting is just getting started at 3% planted compared to the five-year average of 3%.
Wisconsin
As of April 29, slightly over half the state is abnormally dry with 23% in moderate drought. Much of the dry areas is in the central part of the state moving south. The north central part of Wisconsin received about .5” last week of rain keeping that area out of any drought stage. According to the Crop Progress Report Monday, corn planting in the state is on track at 6% compared to the five-year average at 5%. Soybean planting is just getting started as well with 2% planted compared to the five-year average of 1%.
Insights into buyer strategies and tactical negotiation levers:
Several strategic and tactical negotiation levers are explained in the report to help buyers achieve the best prices for the Wine Grape market. The report also aids buyers with relevant Wine Grape pricing levels, pros, and cons of prevalent pricing models such as volume-based pricing, spot pricing, and cost-plus pricing and category management strategies and best practices to fulfill their category objectives.
The pressure from substitutes and a moderate level of threat from new entrants has resulted in the low bargaining power of suppliers.
Price forecasts are beneficial in purchase planning, especially when supplemented by the constant monitoring of price influencing factors. During the forecast period, the market expects a change of 2.00%-5.00%.
Identify favorable opportunities in Wine Grape TCO (total cost of ownership).
Expected changes in price forecast and factors driving the current and future price changes.
Identify pricing models that offer the most rewarding opportunities.
Some of the top Wine Grape suppliers listed in this report:
This Wine Grape procurement intelligence report has enlisted the top suppliers and their cost structures, SLA terms, best selection criteria, and negotiation strategies.
Miguel Torres SA
Vinos de los Herederos del Marques de Riscal SA
Bronco Wine Co.
Chateau Margaux
Alexander Valley Vineyards
Vina Concha y Toro SA
Dominio de Tares SA
Beckstoffer Vineyards
Vranken Pommery Monopole SA
Pernod Ricard Winemakers Pty. Ltd.
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The Government of Ontario is investing over $115,000 to help increase consumer demand for locally grown grapes and to launch a new table grape variety. The funding will be provided to the Ontario Fresh Grape Growers Marketing Board, intent on increasing marketing activities during the local grape season.
Niagara to benefit from investments Sam Oosterhoff, MPP for Niagara West, told: iheartradio.ca: "While Niagara is known for our famous wine grapes and fresh peaches, our region is also a key producer of table grapes. This new funding will help diversify production at local vineyards and highlight the innovative spirit of growers in Niagara. Whether producing wine, juice or table grapes, our tender fruit farmers grow some of the best produce in the world."
Commodity prices for corn and soybeans are strong heading into planting season, and many farmers with remaining supplies of 2020 crop are emptying their bins.
But just how long those same bins will hold the 2021 harvest is unclear, according to Ryan Stinoski, grain purchasing representative for Mark Hershey Farms in Lebanon, Pennsylvania. He says farmers are faced with a gamble — lock in the current high prices and sell at harvest, or hold this year’s crop in hopes that the value increases even more.
“I’ve gotten more calls about forward contracting, but not necessarily guys locking in. With as tight as supplies are right now, they believe a lot could happen between now and the fall,” Stinoski said. “Any weather concern — a super dry summer — has the ability to make prices even stronger. In that regard, farmers are optimistic.”
Bill Hostetter, of Hostetter Grain in Oxford, Pennsylvania, said the strong grain market has resulted in 25% to 50% of growers choosing to forward contract at least a portion of the fall harvest. That’s more than last year at the same time, he said, but the optimism over higher prices isn’t resulting in a rush to plant more acres.
“In our area, we’re not seeing a significant change in planned acres to be planted,” Hostetter said. “Most growers are sticking to their rotations.”
Unpacking Unknowns
Farmers are taking a cautious approach even though commodity prices are high.
The reason?
There are just too many unknowns that could swing corn and soybean prices in any direction.
The most significant factor responsible for the high grain prices — something Hostetter said surfaced eight months ago — is increased demand from China.
Meanwhile, grain producers in South America were faced with abnormally dry growing conditions, which has hampered that region’s ability to export grain to meet China’s demand. As a result, China’s focus has shifted to corn and soybeans from the United States, Hostetter said.
Farmers could add more soybean acres this year due to strong commodity prices, but corn acres are expected to remain the same as input costs spike.
Tom Venesky
And those aren’t the only factors impacting grain prices in Pennsylvania and other Mid-Atlantic states.
“Right now, most of the strength in the corn and soybean markets is due to planting delays in the Midwest,” Hostetter said. “It remains unknown how many acres will get planted in the Midwest.
“You have strong demand from China, challenging growing conditions in South America, and now the Midwest planting delays have added to it.”
Optimistic for 2021, Cautious for 2022
Still, rising demand and strong prices aren’t necessarily equating to huge profit margins for grain producers, and that’s one reason why they remain cautious.
Mike Kuhns, a district manager covering north-central and eastern Pennsylvania for Chemgro Seeds, said higher input costs this year are stifling any potential increase in planted grain acres, especially with corn.
Transportation challenges caused by pandemic disruptions made getting seed and fertilizer to some parts of the country prior to planting season more difficult. Input costs such as urea, which Kuhns said jumped by 20% over last year, and fuel spiked quicker than the rise in commodity prices.
“It really discouraged growers from adding more corn acres,” he said. “I think you may see a few more soybean acres because it doesn’t require that expensive nitrogen, but with corn it’s just more expensive to grow.”
And the issue with high input costs could become more of a challenge heading into 2022, Kuhns believes. He expects the corn price to remain strong in 2021 due to a higher percentage being used for ethanol production, but increasing input costs will restrict the profit margin for farmers.
Inflation could drive input costs even higher in 2022, he said, adding that seed prices could also spike at the same time. As a result, it could cause feed prices to increase substantially in 2022, Kuhns said.
“There are roughly 2 million acres in the U.S. planted for seed corn, and most seed production contracts are connected to the commodity price for corn,” he said. “I think commodity prices could stay high, but the margin to the farmer won’t be as high with more expensive input and harvest costs in 2022.
“Farmers are optimistic for 2021, and they’re cautious for 2022.”
The Renewable Fuel Standard (RFS) ends its current phase in 2022. The EPA has asked the oil, corn, and biofuels industries for input on the next phase of the biofuel policy, according to Reuters.
Matt Benoit / Shutterstock.com
The RFS has remained an area of contention between the corn and oil industries since its inception.
Under the regulations, oil refineries are required to “blend increasing billions of gallons of biofuels into the nation’s fuel mix each year or buy tradeable credits from those that do,” according to Reuters.
“The oil industry dislikes the policy because it is costly and props up a huge and competing market for biofuels like corn-based ethanol, while the corn and biofuel sectors want to see the program expanded to help farmers hard hit by years of low commodity prices and trade disputes.”
The RFS was created in 2005 and signed into law by George W. Bush, then expanded under the Energy Independence and Security Act (EISA) of 2007.
“The original intent of the law was to enhance U.S. energy security by replacing some imported petroleum with domestically produced ethanol,” according to the Center for American Progress. “Congress also sought to drive investment in the development and production of cellulosic and advanced biofuels that yield significantly less carbon pollution than conventional ethanol, gasoline, and diesel fuels.”
RFS Fuels
One of the requirements for a fuel to qualify as renewable under the RFS is that it must result in reduced greenhouse gas (GHG) emissions as compared with a 2005 petroleum baseline.
Four fuel categories are regulated under the RFS:
Biomass-based diesel
Cellulosic biofuel
Advanced biofuel
Total renewable fuel, such as ethanol
“EPA has approved fuel pathways under the RFS program under all four categories of renewable fuel,” accord to the EPA’s RFS website. “Advanced pathways already approved include ethanol made from sugarcane; jet fuel made from camelina; cellulosic ethanol made from corn stover; compressed natural gas from municipal wastewater treatment facility digesters; and others.”
Expectations for the Next Phase
Beginning in 2023, the EPA assumes the responsibility for mandating volumes from Congress.
“Some of the groups, such as the American Petroleum Institute [API] are advocating for the EPA to use the RFS to encourage increased use of advanced and cellulosic biofuels, instead of conventional biofuels such as ethanol,” according to Reuters.
“Renewable diesel, renewable natural gas from landfills and many other technologies can help achieve our shared goal of reducing [GHG] emissions,” API Senior Policy Advisor Patrick Kelly told Reuters.
“[T]he American Fuel & Petrochemical Manufacturers, said it wants the EPA to establish a methodology to ensure blending volumes are in line with market conditions for that year – meaning they would be lower in periods of weak demand and higher when demand ticks up,” according to Reuters.
The National Biodiesel Board, representing the biodiesel industry, told Reuters that it wants the EPA to “ensure that the RFS keeps up with anticipated growing demand for biodiesel and renewable diesel.”
“One representative from a biofuel group, who asked not to be named, said the group is looking for continued growth or ‘at the bare minimum’ stability in blending volumes for each category of renewable fuels,” Reuters adds.
LOUISVILLE, Ky. — As kids, Kosta and Pete Hronis peeked through the trackside fence at Santa Anita to watch horses run. The wide-eyed pair growing up in the dusty agricultural expanse outside Bakersfield made holiday trips to the racetrack with their Pasadena grandparents.
The thundering hooves and Racing Form-slapping regulars intoxicated the brothers since the first day they were allowed to bet on a winner.
When they landed driver’s licenses, they began to go to the track on their own. As they grabbed the reigns of the family’s table grape- and citrus-growing operation that stretches across 9,000 acres, they purchased a box at the track. In 2010, they claimed their first horse.
Now, the “grape growers from the valley” are co-owners of Rock Your World, a top contender in Saturday’s Kentucky Derby. Kosta, a Del Mar Thoroughbred Club board member, marvels at the sweet intersection of talent, timing, luck — and finding his way to the other side of the fence.
“We’ve never even been close (to the Derby),” said Hronis, 62. “The one thing you know about this, you can’t try to do it. You can’t buy your way into it. If it happens, it happens organically. If things fall into place for a 3-year-old who comes around at the right time, you enjoy the ride.
“It’s definitely a needle in the haystack kind of thing.”
As a businessman, Kosta knows a thing or three about navigating a blizzard of business-related numbers. Hronis Inc. has coaxed grapes and oranges from the San Joaquin Valley soil since 1945. It’s a delicate balancing act in a complex climate with chill and tule fog in the winter and temperatures that can soar beyond 110 degrees in summer.
That background, along with more than a decade in horse racing, built sobering understanding in Kosta about the long odds of a horse finding the starting gate at Churchill Downs. Rock Your World was born into a 2018 foal crop totaling 21,181 in North America, according to The Jockey Club. Of those horses, just 20 breathe rare Kentucky air on the first Saturday in May.
For most, reaching the Derby feels a bit like lassoing a shooting star.
“After (winning) the Pasadena Stakes, Belinda Stronach, who owns the racetrack (at Santa Anita), said to me, ‘My dad’s going to be really jealous of you, because in all of his years he’s never had a horse in the Kentucky Derby,’ ” Hronis said. “So I think about Frank Stronach, what a great horseman he was, how many Eclipse Awards he won as an owner and it really made me appreciate what had been accomplished.
“To hear Belinda say that to me was a real ‘wow’ moment.”
The unbeaten colt cruised to wins in a pair of turf races before collecting a $450,000 payday by romping to a 4½-length victory over fellow Derby qualifier Medina Spirit in the Santa Anita Derby on April 3.
The dirt race pushed the son of 2003 Pacific Classic winner Candy Ride to Churchill Downs as the second betting favorite at 5-1, looking up at only Derby favorite Essential Quality (2-1).
So you’re saying there’s a chance?
Hronis’ brother, Pete, framed the thinking of the men grounded by the fertile ground surrounding the company anchored outside of Delano.
“At the end of the day we’re farmers, professional grape growers,” Pete said. “No matter what happens on that Saturday, we’ll be selling grapes on Monday.”
The seeds of Hronis Racing, so to speak, were planted with one person, trainer John Sadler. An usher at Santa Anita set up an initial meeting when he heard the brothers discussing the possibility of sinking deeper roots in the sport.
From the beginning, Sadler preached patience.
“I’ve never been invited to an auction,” Hronis said with a chuckle. “John makes me stay at work. ‘You stay and take care of the grapes and I’ll go look at the horses.’ When I first was with John in 2011, I said, ‘Hey, the 2-year-old sales, can I be part of that?’ He said, ‘No, you’re not ready yet. We’re going to just keep claiming horses. Just keep doing what you’re doing.’
“I think people jump in and jump out so fast because they get discouraged. I think he liked us and wanted to bring us along at his pace.”
When the group scooped up Rock Your World at Keeneland’s renowned September yearling sale for $650,000, that patience would be tested.
Hronis passed, Sadler said.
“The exceptional thing about him, in this day and age of complex things, he’s from the Central Valley,” Sadler said. “He’s very straight forward. He’s the real deal. When you get to know him, it’s hard not to like him. He doesn’t blow his own horn. He’s just a good guy.”
Fellow Del Mar board member, horse advocate and actress Bo Derek was asked to describe the unique prospect of a sitting board member capturing the most prestigious race.
“The best,” Derek said. “The best. The space shuttle is going to hear me screaming.”
Astronauts are unlikely to hear it from Hronis.
“He’s very understated,” Derek said.
After winning the Santa Anita Derby and guaranteeing a spot in the Derby for the first time, Hronis and Sadler skipped the caviar and Cristal.
“We went to a Mexican restaurant in Pasadena,” Hronis said. “It was just enchiladas, tacos, burritos. That was about it. John needs to get home and get to bed because that alarm clock goes off at 3 every morning.”
Though it sounds tame, it in no way erases the tunnel vision. Hronis said he’s at a California racetrack 50 of 52 weekends a year. His wife, Stephanie, dives into work that benefits track workers and retired horses.
“We don’t hunt. We don’t fish. We don’t ski. We don’t golf,” Hronis said. “This became our hobby.”
* Wheat up as U.S. dryness expands (Updates with closing prices)
By Christopher Walljasper
CHICAGO, April 29 (Reuters) - U.S. corn futures ended mixed on Thursday as traders took profits following a strong run-up in the market, while global supply concerns offered support.
Soybeans slipped as soyoil stepped back from recent highs, while wheat ticked higher as dryness expands across the U.S. Great Plains.
The most-active corn futures on the Chicago Board of Trade ended 4-1/4 cents higher at $6.48-1/4 per bushel, while nearby May corn added 15-3/4 cents to $7.02 per bushel.
Wheat futures added 6-1/4 cents to $7.29 per bushel. Soybean futures lost 11-1/2 cents to end at $15.02-1/4 per bushel.
Profit taking and promising U.S. planting weather pushed corn and soybean markets lower, despite uncertainties about global production.
"We've had several days of good selling," said Jack Scoville, market analyst at the Price Futures Group. "I expect sideways, with a fairly volatile market in through here."
Southern Brazil is forecast to stay dry into early May, but an expected warming of temperatures along with showers in the U.S. Midwest could help planting and early crop development.
"It's still chilly, but at least there's some rain around, it's looking better for planting. So that's hurting the new crop (futures)."
Corn export sales totaled 1.075 million tonnes in the week ended April 22, the U.S. Department of Agriculture said, in line with analysts' forecasts of 500,000 tonnes to 1.6 million tonnes.
Soybean export sales totaled 731,500 tonnes, topping forecasts ranging from 100,000 to 700,000 tonnes.
Wheat gained despite pressure from major buyers deferring or lowering purchases amid soaring prices, as dryness across the U.S. Plains intensifies, according to the U.S. drought monitor.
Wheat continues to get support as a more affordable alternative feedstock to corn, according to Terry Reilly, senior agriculture futures analyst at Futures International.
"Wheat got cheap, relative to corn, so demand for wheat picked up a little bit," he said.
Wheat export sales totaled 461,300 tonnes, in line with analysts' forecasts of 200,000 to 750,000 tonnes. (Reporting by Christopher Walljasper in Chicago Additional reporting by Colin Packham in Sydney Editing by Matthew Lewis)
CANBERRA, April 30 (Reuters) - U.S. corn futures edged higher on Friday, as the grain was poised to post its biggest one-month gain in more than two years on global supply concerns.
Soybeans were little changed, while wheat rose 0.5%.
The most-active corn futures on the Chicago Board of Trade were up 0.2% at $6.49-3/4 a bushel by 0401 GMT, after closing up 0.7% lower on Thursday.
Corn up 15% during April, the biggest monthly gain since May 2019.
Corn hit a near 8-year high of $6.84 a bushel earlier in the week.
"The market is tightening. Demand is strong and the market is still trying to figure out production in South America and the U.S," said a Melbourne-based grains trader who declined to be named as he is not authorised to talk to the media.
Corn export sales totalled 1.075 million tonnes in the week ended April 22, the U.S. Department of Agriculture said, in line with analysts' forecasts of 500,000 tonnes to 1.6 million tonnes.
Southern Brazil is forecast to stay dry into early May, but an expected warming of temperatures along with showers in the U.S. Midwest could help planting and early crop development.
The International Grains Council on Thursday trimmed its forecast for global corn (maize) production in the 2021/22 season with a cut in the crop outlook for the United States.
The most active soybean futures up 0.1% to $15.03-1/4 a bushel, after closing up 0.7% in the previous session.
Soybeans are up nearly 5% for the month, their 11th straight monthly gain.
Soybean export sales totalled 731,500 tonnes, topping forecasts ranging from 100,000 to 700,000 tonnes.
The most active wheat futures down 0.3% at $7.00 a bushel after closing up 0.9% in the previous session.
Wheat is up nearly 19% for the month, their biggest monthly gain since June 2017.
The European Commission on Thursday lowered its forecast of usable production of common wheat in European Union's 27 member countries in 2021/22 to 124.8 million tonnes from an initial estimate of 126.7 million last month. (Reporting by Colin Packham; Editing by Rashmi Aich)
As kids, Kosta and Pete Hronis peeked through the trackside fence at Santa Anita to watch horses run. The wide-eyed pair growing up in the dusty agricultural expanse outside Bakersfield made holiday trips to the racetrack with their Pasadena grandparents.
The thundering hooves and Racing Form-slapping regulars intoxicated the brothers since the first day they were allowed to bet on a winner.
When they landed driver’s licenses, they began to go to the track on their own. As they grabbed the reigns of the family’s table grape- and citrus-growing operation that stretches across 9,000 acres, they purchased a box at the track. In 2010, they claimed their first horse.
Now, the “grape growers from the valley” are co-owners of Rock Your World, a top contender in Saturday’s Kentucky Derby. Kosta, a Del Mar Thoroughbred Club board member, marvels at the sweet intersection of talent, timing, luck — and finding his way to the other side of the fence.
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“We’ve never even been close (to the Derby),” said Hronis, 62. “The one thing you know about this, you can’t try to do it. You can’t buy your way into it. If it happens, it happens organically. If things fall into place for a 3-year-old who comes around at the right time, you enjoy the ride.
“It’s definitely a needle in the haystack kind of thing.”
As a businessman, Kosta knows a thing or three about navigating a blizzard of business-related numbers. Hronis Inc. has coaxed grapes and oranges from the San Joaquin Valley soil since 1945. It’s a delicate balancing act in a complex climate with chill and tule fog in the winter and temperatures that can soar beyond 110 degrees in summer.
That background, along with more than a decade in horse racing, built sobering understanding in Kosta about the long odds of a horse finding the starting gate at Churchill Downs. Rock Your World was born into a 2018 foal crop totaling 21,181 in North America, according to The Jockey Club. Of those horses, just 20 breathe rare Kentucky air on the first Saturday in May.
For most, reaching the Derby feels a bit like lassoing a shooting star.
“After (winning) the Pasadena Stakes, Belinda Stronach, who owns the racetrack (at Santa Anita), said to me, ‘My dad’s going to be really jealous of you, because in all of his years he’s never had a horse in the Kentucky Derby,’ ” Hronis said. “So I think about Frank Stronach, what a great horseman he was, how many Eclipse Awards he won as an owner and it really made me appreciate what had been accomplished.
“To hear Belinda say that to me was a real ‘wow’ moment.”
The unbeaten colt cruised to wins in a pair of turf races before collecting a $450,000 payday by romping to a 4½-length victory over fellow Derby qualifier Medina Spirit in the Santa Anita Derby on April 3.
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The dirt race pushed the son of 2003 Pacific Classic winner Candy Ride to Churchill Downs as the second betting favorite at 5-1, looking up at only Derby favorite Essential Quality (2-1).
So you’re saying there’s a chance?
Hronis’ brother, Pete, framed the thinking of the men grounded by the fertile ground surrounding the company anchored outside of Delano.
“At the end of the day we’re farmers, professional grape growers,” Pete said. “No matter what happens on that Saturday, we’ll be selling grapes on Monday.”
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The seeds of Hronis Racing, so to speak, were planted with one person, trainer John Sadler. An usher at Santa Anita set up an initial meeting when he heard the brothers discussing the possibility of sinking deeper roots in the sport.
From the beginning, Sadler preached patience.
“I’ve never been invited to an auction,” Hronis said with a chuckle. “John makes me stay at work. ‘You stay and take care of the grapes and I’ll go look at the horses.’ When I first was with John in 2011, I said, ‘Hey, the 2-year-old sales, can I be part of that?’ He said, ‘No, you’re not ready yet. We’re going to just keep claiming horses. Just keep doing what you’re doing.’
“I think people jump in and jump out so fast because they get discouraged. I think he liked us and wanted to bring us along at his pace.”
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When the group scooped up Rock Your World at Keeneland’s renowned September yearling sale for $650,000, that patience would be tested.
Hronis passed, Sadler said.
“The exceptional thing about him, in this day and age of complex things, he’s from the Central Valley,” Sadler said. “He’s very straight forward. He’s the real deal. When you get to know him, it’s hard not to like him. He doesn’t blow his own horn. He’s just a good guy.”
Fellow Del Mar board member, horse advocate and actress Bo Derek was asked to describe the unique prospect of a sitting board member capturing the most prestigious race.
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“The best,” Derek said. “The best. The space shuttle is going to hear me screaming.”
Astronauts are unlikely to hear it from Hronis.
“He’s very understated,” Derek said.
After winning the Santa Anita Derby and guaranteeing a spot in the Derby for the first time, Hronis and Sadler skipped the caviar and Cristal.
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“We went to a Mexican restaurant in Pasadena,” Hronis said. “It was just enchiladas, tacos, burritos. That was about it. John needs to get home and get to bed because that alarm clock goes off at 3 every morning.”
Though it sounds tame, it in no way erases the tunnel vision. Hronis said he’s at a California racetrack 50 of 52 weekends a year. His wife, Stephanie, dives into work that benefits track workers and retired horses.
“We don’t hunt. We don’t fish. We don’t ski. We don’t golf,” Hronis said. “This became our hobby.”
Why straddle the fence?
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A Rockin’ name
LOUISVILLE, Ky. — How did Rock Your World get his name? Mike Talla, a real estate developer and entrepreneur who co-owns the horse with Del Mar Thoroughbred Club board member Kosta Hronis, explained.
For Talla, who names all his horses, it was a split-second decision out of a conversation with trainer John Sadler.
“John said he’d found this thin, skinny horse that wasn’t filled out yet with great character and great breeding,” Talla said. “I think he’s going to be the best horse you’ve ever owned. So come up with a big name. It has to be big, because this horse could be really special.”
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Talla began perhaps the shortest brainstorming session in modern horse-naming history.
“I said, ‘OK John, you want a name that’s going to rock your world, right?’ ” Talla said. “He said, ‘Yes.’ I said, ‘Well, that’s the name.’ He said, ‘What is?’ I said, ‘Rock Your World.’ ”
The horse in fact grew into his oversized name.
“He’s very balanced and light on his feet,” Talla said. “When he runs, he glides across the dirt. He’s not built like the strong, powerful runners. He’s a throwback to the 1920s and ’30s when horses were brought over from Europe. Very elegant and athletic. Now, (top Thoroughbreds) are getting muscular and quarter horse-y looking.
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“When you watch him, he doesn’t like when his feet touch the ground. He picks them up right away. Some horses do that, but not as much as he does. That’s a telling sign about how athletic he is.”
Rock Your World runs ... and runs ... and runs.
“Once a race is finished, he doesn’t turn around and come back,” Talla said. “He runs right through the wire and keeps going. When you talk to (former jockey Umberto) Rispoli or (Derby jockey Joel) Rosario, ‘Where’d you go? The other horses are headed back to the barn?’ They say, ‘I couldn’t stop him, Mike. He wants to run.’
“Just because the race is over, that doesn’t mean anything to him,” Talla said. “He just keeps going. Every race he runs, he adds on like a half a mile. And it doesn’t seem to tire him out. Maybe (the Derby distance of) a mile and a quarter will.”
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Rock Your World will break from the No. 15 post, which has won the Derby 10.2 percent of the time since the use of starting gates began in 1930. That’s third-best of the 20 post positions.
— Bryce Miller
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Odds fail to define ‘Charlie’
LOUISVILLE, Ky. — One barn away from Hronis Racing’s Rock Your World, fourth Kentucky Derby choice Hot Rod Charlie and Del Mar owner Bill Strauss stretched their legs.
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The three ownership groups behind the horse — Bill Strauss, Roadrunner Racing and Boat Racing — undoubtedly are bringing the biggest, rowdiest contingent to Churchill Downs. The throng Strauss said could reach 170 includes the “Boat” group, five 20-something former football players at Brown University.
Hot Rod Charlie, with 8-1 odds, defies numbers. The 94-1 starter in the most recent Breeders’ Cup Juvenile finished a startling second by a mere three-quarters of a length … to current Kentucky Derby favorite Essential Quality.
“He doesn’t get phased at all,” Strauss said.
Nerves? Nah.
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“None at all,” said Strauss, who co-founded the multi-million-dollar company ProFlowers.com. “When they load him into the (starting) gate, that’s when the butterflies will start.”
— Bryce Miller
Del Mar’s Bill Strauss, far right, and co-owners of Hot Rod Charlie celebrate winning the $1 million Louisiana Derby.
investing over $115,000 to help increase consumer demand for locally grown grapes and to launch a new table grape variety. The funding will be provided to the Ontario Fresh Grape Growers Marketing Board, intent on increasing marketing activities during the local grape season.
