On Wednesday’s AgriTalk After the Bell, host Chip Flory asked Matt Bennett from Bennett Consulting about not only 2018 marketing opportunities in corn, soybeans and wheat, but they started the conversation with 2019-crop marketings.
“When new-crop HRW futures hit the $6.00 level, that’s kind of a no-brainer for me,” said Bennett. “That’s a great place to get started and if that happens to be the worst sale, so be it.”
On new-crop corn and soybeans, Bennett said, “Listen, I know guys are going to roll their eyes at this, but know your cost of production and if we’re at levels that will give you a positive return, it’s a good place to get started.”
Bennett explained current prices are not at “get crazy” with sales levels, but if a positive return with a normal basis can be had, locking in prices on a portion of production is not a bad idea.
Basis levels on harvest-delivery 2019 is too wide for a straight cash sale in most locations, but fees on a hedge-to-arrive contracts are manageable.