Know when to sell
Reading Roy Smith's column today, seems as if he's used a combination season/technical approach and come up with the idea to sell some beans. Forward contracted a batch of '12 crop, given that the first week in may has a good chance of being a high mark for the beans.
"Because the basis on new crop soybeans was at least 25 cents better than last year at this time, my decision was to make the sale in the cash market. Last week I put in the order to sell at $13.00. It took a few days to fill. I am happy that the first increment of soybeans was priced at a very good level out of the field with no storage costs. If the price goes higher from here I will be happy. More increments can be sold later as growing conditions develop."
How bad can that strategy be?
Re: Know when to sell
A year ago I forward contracted beans @ $11.34 for fall 2011 delivery. I survived that and I would say that $13 is better. I think you made agood decision if they go to $10 or $14. In fact I do hope you get $14 or more for the rest.