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Veteran Contributor
Doug N
Posts: 109
Registered: ‎09-22-2011
0

MT new crop prices

MT, Do you see any recovery in corn or soybean NC prices before planting starts? Also, why do you think that MN SD ND may have trouble getting a crop in? Thanks
Senior Contributor
cowfarmer
Posts: 509
Registered: ‎02-01-2011
0

Re: MT new crop prices

My banker today said he thanks I should sell some new crop, they are hearing $4.50 corn coming. Makes me wonder. 

Advisor
c-x-1
Posts: 3,208
Registered: ‎06-26-2012
0

Re: MT new crop prices

the bankers are like the headlines.........FEAR MONGERS.......it's your indicator to buy, my friend

Veteran Advisor
roarintiger1
Posts: 1,568
Registered: ‎04-29-2011
0

Re: MT new crop prices

I think it's time that farmers loan money to the banks.......and tell them to take less for their services.....and quit building all these branch buildings.

"Failing to prepare is preparing to fail." "Success happens when preparation meets opportunity"
Veteran Advisor
Jim Meade / Iowa City
Posts: 2,429
Registered: ‎04-30-2010
0

Re: MT new crop prices

What are the scenarios?

 

1.  You sell grain at a profit or breakeven.  Prices go down.  You are happy.  You could Texas hedge in various ways.

2.  You sell grain at a profit or breakeven.  Prices go up.  You are unhappy but not broke.  You may sell puts, buy futures or calls if you are confident of the outcome.

3.  You do not sell and prices go up.  You are happy.  You can buy calls, sell puts or buy futures to try to ride the prices up if you want to speculate.

4.  You do not sell and prices go down.  You are unhappy and try to minimize losses by selling on the way down, selling the board or buying puts.  You end up losiing money.

 

In scenarious 1, 2 and 3, you come out even or better.  In scenario 4 you lose money.

 

 

Advisor
c-x-1
Posts: 3,208
Registered: ‎06-26-2012
0

Re: MT new crop prices

Jim,

 

does that Texas hedge involve me since i'm here?:smileywink: