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pcorn1259562
Member

MARKETING COMPANY RECOMMENDATIONS

Looking to start working with an adviser in marketing corn and soybeans and was looking for a recommendation. Farm around 500 acres in southwest Iowa and have only used forward contracting in the past. Any recommendations from someone that has had success working with a company or individual would be greatly appreciated.

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3 Replies
aaron-neill
Veteran Contributor

Re: MARKETING COMPANY RECOMMENDATIONS

I use several informational services.  I like Garrett Toay for being personal and access to options.  He puts out morning, afternoon and a large weekend editorial.  He has more information that I can digest at times.  http://agtradertalk.com/  Bill Fordham is a great assett and have used him for 10-years.  He was the only person I know of that predicted the mass run up in 2008, the rest were bears.  He made me a ton of money.  He has some very intersting things going on right now.  http://www.cs-grainmarketconsulting.com/  Good luck

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Wind
Advisor

Re: MARKETING COMPANY RECOMMENDATIONS

Most likely not what you are looking for but still interesting. http://www.cffm.umn.edu/GrainMarketing/CelebMarketingPlans.aspx

Jim Meade / Iowa City
Senior Advisor

Re: MARKETING COMPANY RECOMMENDATIONS

Are you looking for someone to help you become a trader or do you want someone to help you hedge production?  

Very, very few people make any money on a consistent basis as a trader, is my guess.  

If you want some one to help you hedge your production, many of the land grant colleges have extension programs that discuss markting in general and some help with hedging in particular.  The University of Minnesota is one, Iowa State has some stuff and the University of Illinois is very good in some regards.

Most university advisors will recommend you develop and implement a marketing plan.  Probably not 1 in 10 people on this site both have and implement a marketing plan, and those who claim they have a marketing plan really have a half-baked approach like, "I'll sell when it's high" or some other objective that is not really an objective.

 

Dr. Bob Wisner of Iowa State wrote a paper on using an advisory service:

http://www2.econ.iastate.edu/faculty/wisner/DoYouNeedaMarket.pdf

 

The University of Illinois ahs some stuff out:

http://www.farmdoc.illinois.edu/nccc134/conf_1999/pdf/confp1-99.pdf

 

These are not all that recent.

 

One thing you'll find is that the typical broker only makes money when you trade, and it is in his best interest to get you to trade.  Traders are also short-term focused.  Hedgers are long term focused but you'll find very few brokers and traders who will be serious with helping you hedge.  It's no twhat they do and why shold they be any good at it?

 

The bottom line is you need to educate yourself and it will take a number of years, especially since every year is different and things that worked in 2006 did not work in 2008 and the 2008 best strategies are not the best today.

 

My advice is to start following the ISU and Nebraska and Kansas and Misourri extenesion sites and see what they say about marketing (hedging).  This year promises to be a very hard year to market in - some predict record supply and say to sell now while others say well, yo umight as well wait and hope for a drought.  Who knows?  We can't read the future.

 

You'll find the hardest thing about a marketing plan that you finally got completed is to implement it.  There are a million reasons, including bad advice you see on the internet, why you should change your plan - most of they are no good.

 

There are no magic formulas out there.  If there were, we'd all use them.