Posted by: usset001 | March 22, 2010

Marketing Plan(s) Update for Spring Wheat

My update of marketing actions and plans, before and after harvest, continues. Today the topic is spring wheat.

Spring Wheat 2009 Post-harvest: You can find the plan here (and my plan with February updates should be posted soon). The spring wheat market was showing some attractive carrying charges last August, and that trend has continued. I like selling large carrying charges so that was my choice at harvest – it has worked very well. Cash prices for spring wheat are less than $5 per bushel in the Red River Valley. Thanks to a large carry at harvest and some impressive (lucky?) pre-harvest sales, I will price the 2009 cropin three lots ranging from $5.50 – 10.50 per bushel, with an average close to $8. I can’t say for certain because I still have 10,000 bushel in storage, waiting for the basis to reach 5 cents under the July contract.

Spring Wheat 2010 Pre-harvest: Like corn and soybeans, I posted my 2010 pre-harvest marketing plan for spring wheat in early June, 2009. New crop Sep’10 futures are currently trading near the $5.35 mark, a whopping $2.10 cents less than my starting point of $7.45 per bushel. Up next is a sale of 2,500 bushels on May 27 and a final sale of 5,000 bushels on June 25. A rally would still do me good because I have more to sell!

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