Posted by: usset001 | February 16, 2011

2011 Pre-harvest marketing update – soybeans

I am reading my latest issue of Prairie Grains magazine and on page 22 is a little side-bar titled, “Top 10 things to make you feel better about selling your crops too early.” I guess I’m not the only person with the “too early and too cheap” feeling. 

For 2011 soybeans, I started pricing in early August and by the end of September I had about 30% of my expected crop priced (once again, expectations are based on “actual production history,” which can be a subdued view of current production capabilities). You can see my 2011 Pre-Harvest Marketing Plan for Soybeans here.

I held off on any further sales until early January. As of the start of the new year I had reached all price objectives but, like corn, I made the decision to hold back one last sale until the middle of April. Hey, it’s a bull market and it’s OK defer a decision to a later date (and note, please, that I said defer a decision and not throw away the marketing plan).

I am currently about 60% sold at an average price of about $11.20 Nov’11 soybean futures. The market is more than $2 per bushel higher today. While it hurts to look at this result, I can always look at the bright side which is this; I still have nearly 40% of 2011 soybeans to price and I have not begun to look at 2012.

I’m just beginning to wrap my mind around 2012. Nov’12 futures are trading at about $12.25 per bushel. It is on my radar but I am not ready to fire.

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