"A hundred years from now it will not matter what my bank account was, the sort of house I lived in, or the kind of car I drove .... but the world maybe different because I was important in the life of a child."
WEEKEND HOURS: We are planning on closing Friday at 5 due to snow. If you want to dump over the weekend call ahead.
It is time to start thinking about a plan for next year's corn (and wheat) crops. "Hoping it gets better" is not a great plan. We have about 45¢ of carry from Dec17-Dec18. That term structure is a big declining escalator that rolls down some more every time a delivery month drops off. This has been playing out for some time now and will continue, until something disrupts supply. This type of market favours the forward seller. You might not be excited about where forward bids are today, but those bids are a lot better than spot bids. A good and easy plan to execute is to call up your favourite elevator ( Shameless plug: presumeably the one with the fastest pits and 7 day service so you have a smooth harvest... but I digress) and offer some incremental targets. There seems to be a lot of longing for $200 corn. If that's what you need, putting in some targets at $190/$200/$210 would accomplish the same thing, but if we don't get to $200 at least you are 1/3 sold at a lot higher than today's spot bid. We need to get over the "What if I can't deliver?" fear. It has cost a lot people a lot of money. We want to assure you that we are NOT one of the elevators that forces you into physical delivery, or forces you to buy out your contract. We have a commitment that we will roll you into the carry. If you don't understand what that means to your operation, it's time we had a conversation. The new year is a great time to look at a fresh new approach. So are you interested in a meeting in your area about this? If you are, contact us. We will take you right back to the basics to help you develop a more profitable marketing plan for your own farming operation. Understanding how the markets actually work, and what opportunties they provide to you, are important to reducing your stress levels, and to providing you with the best grain prices available. Give us a call!
Keep an eye on next year's soy prices and run your 5 step plan for perspective. We are at, or very close to, profitable levels. When the cookie plate goes around don't be afraid to take a couple. We have made some good sized soy sales for new crop ourselves. The export demand out the St Lawrence is as poor as we have seen it ... not good for futures if South America churns out another big crop. Time will tell. Sales made at this time last year worked out pretty well.
As a way to avoid corn storage charges that typically eat up all price improvement, use our brand new Maximizer contract. You can price with it pre or post harvest. Consider the quoted price a floor, you will not take lower than that price. Stored corn has downside risk. The Maximizer has upside opportunity. If the market offers you a better price this winter or spring you can take the higher price and get paid that day. It is going to tie up cash on you but so does storage. If you need cash now, you still need to sell the harvest price. On bu you don't need the money on, the Maximizer pays you carry, sets a floor and gives you the chance to sell a better number all the way to June 30. There is no cost associated, you retain ownership of the corn, have a storage receipt and full protection under financial protection program. There is no way I would even consider using open storage this fall. Why pay to take risk on? More details can be found by clicking on "Maximizer Contract" in the green margin on the left side of this page.
If you want to defer any income from grain sales into 2018, please contact Donna.
Our direct ship off farm business continues to grow all the time. Give us a call for competitive bids either delivered to end users or picked up at your farm for all commodities. You support our local drivers and help us build local infrastructure.
Target orders are a great way to market your crops. Call the office if you have any questions about how they can work for you.