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roarintiger1
Honored Advisor

Let's have some marketing ideas

In the wake of these higher grain prices, what are some strategies that folks are using to capture some income?

What levels are you selling?   Both old and new crop?   Are you waiting for higher prices?

Do you have any old crop left to sell?

Are you changing your crop rotation?   More soybean acres? Or, more corn acres?

What are the marketing advisors telling you?

My answers are........I am scale up selling of the old crop that I have left.   (wish I had more!)

I am not selling any new crop yet.

I am not changing any acres at this point.  

I'm also working on my 2021 tax plan for the extra income that I am expecting.  Smiley Happy

 

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10 Replies
rickgthf
Senior Advisor

Re: Extra income, getting ahead of yourself, aren't ya?

Marketing ideas, I'm watching the weather in South America like a hawk. Looks like Argentina got some good rains last week, scattered T-storms in parts of Brazil but it's still dry and supposed to stay dry for the next two weeks.  We'll know more by the end of Feb.  If the corn isn't planted by then, whoa Nelly.

For old crop corn right now, the basis actually pretty terrible, liked you'd expect, the mills here are full and they really don't need more right.

  As for new crop corn, the price isn't so bad but the basis is terrible.  The mills are gambling that things eventually turn around, we'll see.

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erikjohnson61y
Advisor

Re: Let's have some marketing ideas

I've sold all my old crop beans - decided to store corn instead since we had good yields around here last year. Couldn't even fit all the corn in all my bins! I was happy with $9.17 bean price out of the field at the time....  I've contracted about 2/3 of my corn, pretty evenly spread out between $4.25 and $5.25. Like Rick, watching SA forecasts closely. If they get a good soaker down there, I'll take it that L:a Nina is fading and we won't be excessively dry next year - sell the rest of the stored and contract a little new crop (maybe 15%).  I've tried chasing higher profits by changing acres before, but it always bites me in the long run, so I'm not changing rotations at all. I might consider buying some new crop puts. Premiums are pretty still this far out though.

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Canuck_2
Senior Contributor

Re: Let's have some marketing ideas

Saw this earlier and come back to see what others had done but not many willing to admit where their marketing is at the moment so...........

I guess my marketing plan is based on sell whenever it looks like I can make money and hold as much as I can if price is not profitable

Winter wheat I was able to contract some of 2020 crop at $250/t Canadian, sold some more when it got back up there and another increment at $260 and cleaned out at $274. Tonight I could get just over $300

Have a first increment of 2021 contracted for $265, it is 282 tonight 

Corn contracted first increment at $205, sold next at harvest $212, then 219 end of Nov and $252 ahead of US report in Jan, tonight it is 267

Soys 1st increment at harvest $467/t, 1st of Jan $628  plus an IP premium of $120/t on both prices,  tonight base price is $652

I am sold out of wheat have 50% of corn and 33% of soys left.

Yes could have waited but there is always the risk of waiting until prices are at breakeven price or lower. I m happy selling at a profit and hope to clean out more if/when markets show signs of turning down.

No plan to change rotation.

 

 

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Riverlandfrmr
Frequent Contributor

Re: Let's have some marketing ideas

Still sitting on 50 percent of both corn and beans. Sold some beans at $9, $9.56, then bigger quantities at $10.29, $11.66, then slowed way down never sold again until $13.42 then decided that I would scale down and sell what I have left divided into a 24 week period that will close around July 4th.  Not selling any new crop yet.  We’re in unchartered water, never have I ever sold bumper crops with record prices.  The market didn’t do its job of rationing when 19 million acres went unplanted in 2019 and now the pipeline is empty.  And They think Covid was a pandemic.  We don’t even have a new crop growing yet to rebuild the supply.

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Hobbyfarmer
Honored Advisor

Re: Let's have some marketing ideas

Still have 7 months to get r done.

As I decided last July I would go heavy on soy in '21 I now have closer to 20 months.

Only have about 38% of the beans left.

Plan on July for them or $15 which ever comes first.

2/3 of the corn still in the bin, gonna meter some of that out one or two loads at a time occasionally. No particular hurry as Aug could see basis improvements. No sin in selling $5+ corn though.

Can not sell.something  before it is a slam dunk in the bin as all beans will be planted in a flood plain. Counting on a decent crop insurance price set as plan B.

Don't have to sell much more than I already have to have enough bin space.

Have the enlist3 beans and herb bought and paid for. Fuel at $1.50 to get into at least second cutting hay.

Just setting  the cruise control and enjoying the ride.

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sw363535
Honored Advisor

Re: Let's have some marketing ideas

Thanks for the reminder about crop insurance price setting.

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k-289
Senior Advisor

Re: Let's have some marketing ideas

Has  one  asking  - IS  there  a  "  formulated  price  insurance  "  on  formulated  feedlot  inventory  -  ? 

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sw363535
Honored Advisor

Re: Let's have some marketing ideas

Not in my world.  It always smells of congressional sewage.  I generally don’t like it and have to remind myself to listen to the speleothems  dripping the current reasons for using it.  

Legalese manipulated on an annual basis, to encourage those who don’t need it to use it while punishing those who need it if they use it. 

(Sorry for the goofy word-  I’m  in a contest to use whatever the commy cell phone puts up there.)

elevated guarantees help the medicine go down............

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erikjohnson61y
Advisor

Re: Let's have some marketing ideas

You might have jinxed us, Tiger....  Corn down 16, beans down 60 in the last 2 days....

 

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