As combines roll and the golden rewards of your planning, planting and tending flow into grain carts, your main focus likely is getting those bushels out of the field fast. However, it pays to run a few quick calculations before pouring them into bins with a plan to leave them there for four to six months. Once they are in the bin, re-running those calculations should be a part of your marketing routine.
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"Within the course of a harvest season, it is quite possible to get different signals from the market at different times," says Carl German, University of Delaware Extension grain marketing specialist. "Your decision to store grain generally is based on two reasons—better prices offered in a later futures month and expectations that basis will improve. At times, these signals may indicate cash sales; at other times, they may suggest storage."
On Oct. 12, German will provide a free live Webinar on how to work through how to calculate the cost of storage and assess whether the market is offering an incentive to keep grain in the bin. Then he’ll discuss various marketing tools such as cash forward contracts, futures and options, to ensure returns don’t slip away. You’ll also have the opportunity to ask questions.
The Webinar will employ worksheets in a new interactive Twenty-first Century Grain Marketing Primer you can use as a resource.