Posted by: usset001 | November 17, 2009

Are you ready price more of your 2010 corn, soybean or wheat crop?

The harvest of 2009 is not over but I’m thinking of next year’s crop. Dec’10 corn futures are trading close to $4.50 per bushel – the best prices since the second week of June. Ditto for Nov’10 soybean futures, which closed today at $10.30 per bushel.We have to go back to January to find a higher quote for 2010 soybeans. While still $1 off early summer levels, Sep’10 spring wheat futures at $6.35 per bushel are more than $1 higher than the lows set in early October.

I wrote my 2010 pre-harvest marketing plans for corn, soybeans and spring wheat in June (posted here). In June, I priced about 20% of my 2010 corn and soybean crops. I was more aggressive in wheat and stand at about 50% priced. For me, the current rally in grain prices will be treated as a great opportunity to get a little deeper into pricing the 2010 crop.

For the record, my next pricing objective in corn is $4.55 Dec’10 corn futures, about 10 cents higher than today’s close. In soybeans, he current market is 25 cents higher than my next price objective of $10.05 Nov’10 futures (I want a 30 cent pemium for early – pre-January 2010 – sales. Almost there!). In spring wheat, the market is still 45 cents away from my $6.80 Sep’10 futures price objective.

How about you? Are treating the current rally as a pricing opportunity, or as the start of the great bull market of 2010?


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