Posted by: usset001 | June 23, 2010

Closing out 2009 post-harvest sales of spring wheat

Large carrying charges persuaded me to store wheat for a long time. It was not until the end of last month when I unwound the last of my 2009 hedges in spring wheat. You can find my 2009 post-harvest marketing plans for spring wheat here.
What a year! As tough as it was in 2008 (too many sales were too early and too cheap), 2009 was a year of opportunities for early and high-priced sales before harvest, and large carries that more than paid for the cost of storing grain after harvest. My final average price for 2009 wheat was $7.96 per bushel. That is more than $2.50 per bushel higher than a simple 18-month average baseline price.

It’s not too early to start thinking about post-harvest plans in 2010. Carrying charges are once again large – 5.5 cents per month from September to March. I think I will be selling the carry once again in 2010.

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