Posted by: usset001 | May 11, 2015

2015 Pre-Harvest Marketing Update

barneybinless

I get questions concerning the pricing of the 2015 crop. Here’s one I received this morning, and it will show where I am today.

Question: We look at your information in our marketing groups.   We were wondering what the plan is for 2015 crop is it stay below you breakeven price?   Will you wait until post harvest to do all of your sales?

My response: You are watching me closely, and you are correct in noting that I have done nothing in the way of pre-harvest marketing for 2015. I have been waiting patiently for some sort of a bounce; and opportunity to get started, even if prices are below production costs. So far, all I’ve received is a kick in the teeth as prices drift lower.

I do not like to go into harvest with nothing done beforehand, but I am ready to do so if we can’t find a rally in the current market. Let me give you my ideas on what I consider “higher.”
Dec’15 corn: currently at $3.75, I was hoping for $4.25 to get started.

Nov’15 soybeans: currently at $9.50 – show me $10.50!

Sep’15 HRS wheat: $5.50 today, but I want one more shot at $6.25
The only way we will get these prices is something bullish in the market – weather related problems during the growing season to be specific. If something gets started on the upside, I may just try to follow the trend higher with a simple moving average. But I need something to get it started (and ideal planting conditions is not much help).
Patience! (I hear it’s a virtue).

Responses

  1. Ed — have you rewarded the recent weather market with any 2015 sales?

  2. Have you started writing your 2016 pre-harvest marketing plan?


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