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Frequent Contributor

round numbers and welding the door shut

I know of many farmers that still have old crop sitting in thier bins because they are waiting for a certain round number to sell at.Years ago their were a couple guys that said they would never sell beans under 9 dollars.One guy filled his bins instead of selling at 8.85 out of the field and ended up taking 6.75 when he got hit by a tornado and the insurance adjuster gave him what the current cash price was on the day the storm hit.

after storing beans for a couple years the other guy said he wanted 10.00 for his beans,he eventualy got it,bragged about it,but if he had waited a few more months he could have got close to 15.00.

I try to sel grain rain the markets stal out or when there simply aren't alot of reasons to make the markets go up.

Round numbers don't mean a thing to the pigs that are eating the feed or the foreign buyers that pay in a diferent currency sell weak markets,hold out during strong ones,ignore round numbers

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4 Replies
Veteran Advisor

Re: round numbers and welding the door shut

Wouldn't a guy be better off to sell into a strong market and stir when it's weak?
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Veteran Contributor

Re: round numbers and welding the door shut

How does a person know what a strong market may be??

The example given of selling beans at 10 and then coulda got 15 is a very good example

Perhaps todays price is srong compared to 6-8 months from today-just saying

I remember a person saying he would not sell at anything below 8.00

It did seem to happen about every 3rd yr. at some time, beans would go to 8.00-this was many yrs ago

Problem was he did not have very deep pockets or the storage space, mostly frustration on his part

Most of us did not have on farm storage and drying facilities back then

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Advisor

Re: round numbers and welding the door shut

I can't justify welding the bin door shut: does to much damage to the door that I eventually have to fix
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Senior Advisor

Re: round numbers and welding the door shut

I don't know anyone storing grain now, but then, I don't get out much.  Smiley Happy

 

Selling on a target price that is unrelated to reality doesn't come across as a very good marketing plan, as you point out.

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