For over twenty years, I have taught American farmers how to improve their marketing skills. One of the main concepts is that farmers need to take advantage of marketing opportunities when they occur. Many times that opportunity comes well before harvest. I know many of you have been told by your father, who was told by his father, not to market grain until you have it in the bin. The idea was, don’t sell until you know you have the crop, and for over 150 years that was good advice. However, with the new crop insurance policies like Revenue Protection, you should feel much more comfortable making sales ahead of harvest. The insurance allows you to market “guaranteed bushels” before harvest.
This year has presented American farmers with a great opportunity to market corn, wheat and soybeans at profitable levels. New crop corn traded as high as $4.17, wheat traded as high as $5.74, and new crop beans as high as $10.47. Did you take advantage of these prices? Top Third had been saying all year that you would get a chance to market your grain at profitable levels. We also said that as the funds came out of short positions and went long, that would be a great opportunity, and that happened.
Since these highs have been made, the market has fallen back on cooler temperatures, and wetter conditions throughout much of the Midwest. There is still plenty of grain available around the world. If you are fortunate enough to get another opportunity near the highs, I would suggest taking a strong look at either pricing cash grain or buying put options to protect against lower prices this fall and winter.
If you have any questions, please feel free to contact Top Third Ag Marketing. LLC. at 1-877-884 3343, or log on to the Top Third website at www.topthird.com
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