As harvest gets rolling, producers throughout farm country are faced with a looming question: How should I market this grain to make the most money possible? Don Roose of U.S. Commodities recently sat down with AgDay host Clinton Grifiths to discuss a few options.
“I think from a producer standpoint you have to sit back [and weigh your options],” he says. “In the corn market, you have to market different than soybeans.”
Roose offers the three following pieces of advice.
Put storage to use. If you’ve got corn to sell, you should consider putting storage to use.
“If you have storage you should take advantage of the carry in the market from December to July, it is 24 cents,” Roose says. ”Try and carry it, but put on some risk management out into July.”
Sell corn off the combine. If you don’t have on-farm storage, it might be in your best interest to sell right away, Roose says.
“I think if you don’t storage on corn, you have to look hard if you can beat the storage cost in the dry down,” he says. “You probably have to sell it off the combine or even before harvest.”
If you’re forced to sell off the combine, Roose recommends using a call option to allow you to take advantage of a spring rally, should one occur.
Sell soybeans now. Soybean demand is front-loaded and waiting on the South American crop, beginning in January. Roose says farmers should sell soybeans now.
“From a producer standpoint, you want to market the crop before the rivers freeze,” he says. “You need to take advantage of the export market and not just be left with the crushing plants.”
Despite low prices, Roose is more in favor of selling soybeans at the current level.