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Senior Contributor

Marketing Advice by ProFarmer

I take the ProFarmer newsletter and the below is there marketing advice for you to compare your own market position with. I neither agree or disagree with there advice, it is just for your information to compare. It is below:

 

Cash only market guys:

 

2012 Corn: 75% of production sold

2013 Corn: 0% sold

 

2012 Beans: 75% of production sold

2013 Beans: 0% sold

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Hedger only guys:

 

2012 Corn: 100% of production sold and no current buy-backs

2013 Corn: 0% sold

 

2012 Beans: 100% of production sold and no current buy-backs

2013 Beans: 0% sold

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3 Replies
Veteran Advisor

Re: Marketing Advice by ProFarmer

UHm just cause it is sold doesn't mean it is profitable. Do you have a price the product was sold at?

 

I think a lot of it was sold at 5.50 or less. Just another good reason not to "take" the rag.

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Senior Contributor

Re: Marketing Advice by ProFarmer

I don't have the exact prices they sold at, only a rough time period they made there sales. But yes, I remember them making sales in the early to late spring and very early summer time periods when corn prices were still under $6 dollars. In my area alot of guys got concerned because they were expecting a record corn production figure and then the drought hit and everything changed. But they made there sales in the under $6 range to even the $5.50 area. So yes, they were and still are hauling $5.50 corn they contracted with the ethanol plants, when at one time last year the ethanol plants were quoting well over $8 for DEC/2012 delivery. $8.25-$5.50= $2.75. Take that times say 100,000bu and a $275,000 variance. Ouch!!!!! Another way to look at it is a drought-reduced yield from 220bu down to 185bu*$5.50= $1,017.50 minus $400/acre in seed, chemicals, fertilizer, etc=$617.50/acre in rough profits before any land costs. So $500/acre in cash rent= $117.50/acre for a rough net acre profit after cash-rent. Still a profit, but if you sold at $8+, the rough net profit would then be $626.25/acre. $626.25- $117.50= $508.75. A pretty large difference in profit per acre I would say, but very few guys hit a home run with there marketing.

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Contributor

Re: Marketing Advice by ProFarmer

I get their wkly. letter and if I remember correctly a lot of their sales and i'm thinking maybe for the hedgers advice they went from around 35% sold before Sept. or there about to 100% sold or hedged during the high time in Sept., Oct. time frame when beans were in the $17 plus range and corn in $8 plus range.  I know I've been wondering ever since then why I didn't follow their advice to a "T".   Maybe this ongoing drought will redeem me??

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