Posted by: usset001 | August 23, 2008

Soybeans: 2009 Pre-Harvest Marketing Plan

I finally got around to writing a pre-harvest marketing plan for my 2009 soybean crop. My approach is the same as in previous years, but the details change.

(1) Minimum cash and futures price objectives are a full $2 higher than I used in my 2008 plan ($8.00 cash and $8.75 Nov’09 futures vs. $6.00 and $6.75 in 2008). It is difficult to exaggerate the speed at which production costs have risen over the past two years.

(2) This latest plan uses 50 cent increments between each pricing step. My maximum price objective is $11.75 Nov’09 futures. For perspective, bear in mind that my maximum price objective in my 2006 was $6.85 futures (and that looked like an ambitious wish when I put it to paper in 2005).

I took action on my first two step based on closing prices on August 21. The sale price of $13.37 Nov’09 futures is $1.30 higher than market closes of just 10 days earlier (whew!) but still $2 less than the recent market highs posted in the days before the 4th of July.


Responses

  1. Ed,

    Can you post your soybean pre-harvest plan? It is not on this page.

    Kevin


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