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rswfarms
Senior Contributor

Marketing Update on Corn/Bean Sales

I get the ProFarmer Newsletter and below is there current marketing advice to compare with your own sales positions. I neither support this advice or disagree with it, it is just for you to compare with your own marketing. It is below:

 

Cash Only Guys:

 

2012 Corn: 75% sold

2013 Corn  0% sold

 

2012 Beans: 75% sold

2013 Beans: 0% sold

 

Hedger Only Guys:

 

2012 Corn: 100% sold

2013 Corn: 0% sold

 

2012 Beans: 100% sold

2013 Beans: 0% sold

 

Also they currently have no reownership buy-backs on either corn or beans of there sold crop

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8 Replies
roarintiger1
Honored Advisor

Re: Marketing Update on Corn/Bean Sales

Wow.....0% sold on 2013?      Not what most market advisers would agree with.   Just what does Profarmer know that they don't?

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rswfarms
Senior Contributor

Re: Marketing Update on Corn/Bean Sales

Yes, roaring, many other market advisors have at least some new crop corn and beans sold. I shouldn't talk, I too have 0% of new crop sold too on both corn and beans. Seems every year we get at least a little rally in prices going into planting season. In Northern Iowa we start planting corn in the middle of April, so we have time yet for a possible rally in prices, but I suppose this year could be different. It all depends on the weather. Some guys in my area are cranking down on there planting pop's for corn from the 38,500/acre rate down to 34,500. If we do get another drought this will be a good decision to help conserve what little subsoil moisture we have. Myself, I am still going with a 35,500 to 38,000 pop rate for corn. Watch, that will come back and bite me in the rear-end!!! LOL

If I knew for sure the drought will continue, I would drop down to 31,500 to 33,500 pop rate. But at this time only the rain God in the sky knows what kind of moisture we will get in 2013. Kinda funny, for most of the last 20+ years in Iowa, we always got too much rain and that is why we invest 100's of thousands of dollars in drainage tile to drain the excess rain off our corn fields so the corn doesn't get that nice yellow color from the waterlogged soil. Yellow corn can really cut down your yield. Yes, I have lost a 1,000x more corn yield to excess water that waterlogg's the dirt, than to drought.

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Blacksandfarmer
Veteran Advisor

Re: Marketing Update on Corn/Bean Sales

RSW I haven't locked in any nc 2013 corn but have sold some new crop beans. I sold some new crop beans prior to the January report  for $12.24 just in case the bean market took a dump, and I sold a little more a week or so ago for $12.80. I still think the corn market has a little more room to run..... Beans maybe not so much?

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farmerguy89
Advisor

Re: Marketing Update on Corn/Bean Sales

this is the month where everyone decides whether they are planting corn or soybeans.

 

heres how ive done so far:

Sold a little bit of corn for 225/t in Nov-Dec, I think (not sure which month I made that deal)?
Sold very little soybeans 12.50ish

Sold a bunch of HRWW for 310ish/t.

Cmon its only February guys. I hardly think we have arrived at the correct price yet. Take a vacation, cause I am; let those markets do what they want for February. Pretend your some sort of hippy type if that makes it easier to do.

 

We'll probably see a slump in futures/cash during planting. A small to large rally on Father's day, and decline in the fall. Maybe a rally in the wintertime if things go right. Pretty much sums up every year doesn't it?

O, PS, sold all corn/beans for 2012 about summertime. Best decision ever.

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Nebrfarmr
Veteran Advisor

Re: Marketing Update on Corn/Bean Sales

I sold some 2013 corn, and for a while it looked like a mistake.   Right now, it looks like it was a wise move.   Maybe in another couple months, it will look like a mistake again.

However, I contracted some expenses, at the same time, so it should average out.

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Shaggy98
Senior Advisor

Re: Marketing Update on Corn/Bean Sales

You must have the same operation book that I've got Neb.  I sold all my grain back in the fall, but delayed payment until May 1st.  Looking back, that was a wise (lucky) decision.  I usually don't like to defer money, I have heard of a few people getting caught up in someone else's bad management plans.  However, my coop is paying me 4% on my money and they have been very stable for many many years.  The last of my input's will be due for payment sometime in May, so it should work out just fine.

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BA Deere
Honored Advisor

Re: Marketing Update on Corn/Bean Sales

Maybe these guys ain`t so dumb, sold out 100% on corn and beans 2, 3 yrs out http://mgex.com/documents/012513.pdf   I haven`t sold anything for `13 nor will I, it`s dry maybe the tiles are running because the rain we`ve had on frozen ground went right into the intakes.

 

But sold out early 100%??  Must be an outfit giving advice to bigshots that have to sell their crop a couple times to make a profit.

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Nebrfarmr
Veteran Advisor

Re: Marketing Update on Corn/Bean Sales

Shaggy, I am with you on not being sure about deferring payments.   I have bin space, and contract ahead, but when I deliver, I want the money.

I have a very good friend, that lost over $100K, in a bad deal with an ethanol plant that went under.   They took his grain, and he only got paid a % of his money, when the time came.   Had he been paid as he delivered, he would have gotten his money.  I really doubt his tax benefits for deferring ever came anywhere near what that cost him.

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