It’s Not Too Early to Market 2020 Grain

05:23PM Sep 03, 2019
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“Use the board and the options to your advantage,” Nicholson said. “There are plenty of people to help you with that. Find the one you’re comfortable with to help you out.”
( Farm Journal )

As harvest approaches and your mind jumps ahead to 2020, it’s important to think through marketing. In fact, Steve Nicholson, grain and oilseed analyst with Rabo AgriFinance, says if the market presents an opportunity lock in 2020 and even 2021 grains.  

“That’s the sermonette, I think,” he told “AgriTalk” host Chip Flory, stressing the importance of not holding off to sell the crop until it’s in the bin. “Look ahead and have that discussion with yourself and your marketer.”

If you have bins, store it and execute on those trades now, he said. Look ahead for opportunities.

“If you look at the board today, we’re in that $3.60 to $3.74 range for December corn. But if you start to look out to 2021, we see $4 from the board,” he explained. “If you can pick up 20 cents to 25 cents, use that grain bin and put it to work.”

“Merchandise it,” he told Flory. “We always say we’ll do it when we get there. No, sell it now.”

If you have to turn around and manage your risk one way or the other on paper, do that too, Flory added. 

“Use the board and the options to your advantage,” Nicholson said. “There are plenty of people to help you with that. Find the one you’re comfortable with to help you out.”