Grain Optimization with GeoGrain
“Effectively marketing grain proves to continue to be one of modern grain farming’s most challenging business segments yet provides possibly the biggest growth opportunity for those willing to adopt new technology and practices,” said Jaki Welch, Director of Marketing for GeoGrain. “Creating a visible landscape of bid data that is unbiased for producers spurs a more competitive marketplace and allows hardworking people to make more money. The more informed you are, the better decisions you make.” Grain markets have seen dramatic swings in 2014 and GeoGrain.com now offers optimization platforms utilizing cash market data from over 4,200 locations, equating to approximately 48,000 bids daily and over 90 million historic records. The optimizer regularly uncovers opportunities that would otherwise go unnoticed. The same concept applies to merchandising as shifts in competitive bids can also create opportunity or the loss of contracts.
What makes these tools so useful? A producer now has the ability to enter a geolocation marker of bins or a farm and their individual operation trucking and storage costs to determine their distinct, individual best-selling opportunity within a 200-mile radius. A merchandiser has access to competitive bids surrounding their facility and can now see what their grain suppliers see. “It’s unrealistic to assume that producers or merchandisers have time to search elevator websites or make phone calls all day to distinguish the best prices for their grain,” said Welch. The GeoGrain Optimizer platforms take the legwork out of that process. An answer is delivered within seconds of hitting enter. Mapping and charting functions, forward prices or basis along with historic trends provide an overall comprehensive view of what determines profitability for Optimizer platform end users. Over time, the Universal Optimizer can find farmers on average an extra 10 to 20 cents per bushel in the cash market. To put that in perspective, for a farmer who planted 2,000 acres of corn and harvested a 160 bushel yield, an extra 10 cents translates into $32,000.
Cody Bills, a nationally recognized market analyst with Grain Hedge and anchor for Grain TV said, “In mid-September 2014 we saw basis at +400 at some facilities due to end of year shortages. It was unlike anything we’ve ever seen.” To take advantage of market conditions like these, GeoGrain provides the most comprehensive, in-depth and accurate cash market data available in the grain markets today.
GeoGrain is an agricultural intelligence organization striving to provide innovative grain market solutions. Founded on the principle that providing cash market data to grain buyers and sellers can consistently and reliably improve business decisions, GeoGrain allows grain market participants to maximize their profit potential. For more information on innovative GeoGrain market solutions please visit, GeoGrain.com or call 866-290-1196.