Posted by: usset001 | April 9, 2009

Decision dates and a pre-harvest sale of corn

Terry Timer likes pre-harvest sales in the spring

Terry Timer likes pre-harvest sales in the spring

April 9 is a decision date in my pre-harvest marketing plan for corn. A decision date is a date when I commit to making a sale, as long as the price opportunity is higher than my minimum price objective. My minimum price objective for new crop corn sales is December futures at $3.95 or higher. Tonight’s close of $4.25 is 30 cents above my minimum – I will take action with the sale of two December futures contracts at $4.25. You can find my latest marketing plans for corn, soybeans and spring wheat here.

I lowered my minimum price from $4.25 to $3.95 in March. A minimum price objective should reflect local production costs. I lowered my minimum to reflect the easing of fertilizer prices since last fall.

I consider the selection of a minimum price to be the most important aspect of writing a pre-harvest marketing plan. Set it too high and you run the risk of doing nothing in the face of good selling opportunities. Set it too low and you run the risk of selling too early and too cheap.


Responses

  1. I think the exit dates that you use in your marketing plans are very important and something that many really need to incorprate into thier own plans. Ed is there a particular reason for the April 9th date? Or just something in the seasonal timeperiod that you are wanting to make some sales?

  2. Ed, are you still using the stages of the moon?

  3. Yes, I do. Until someone can show me why it is a bad idea, I will continue to consider moon phases.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

%d bloggers like this: