Marketing
Strategies essential to
securing prices
matically. Soybeans moved to port quickly this year
and most of the later beans were not harvested because
of high damage once the rain set in for what seemed like
a month straight.
G
In regards to the marketing pool, a futures floor has been established with upside in the forms of calls on a significant portion.
These calls are versus the December. As the Midwest harvest progresses we will determine if there is value in rolling them out, taking what
equity may be in them or rather they will expire worthless. We made
a progress payment on grain sorghum in September for $2.14 cwt and
it may take some time before a corn progress payment is made as a
small percentage of it has been contracted with funds collected.
By Lindsey Bowers
rain harvest 2016 is in the books or, rather, in the
elevator, as we still have most of it to market. The elevators ran pretty smoothly, and though we might have
switched up where to deliver grain we kept trucks
coming in, unloading and heading back to the field.
Space was managed very efficiently, and we even had an opportunity
to operate our Port of Victoria elevator at well above capacity levels.
When it was all said and done, we handled 5,267,626 bushels of corn,
1,551,246 bushels of grain sorghum and 59,466 bushels of soybeans.
We have a portion of the corn contracted and it is being picked up
slowly but steadily. The grain sorghum was all contracted and shipped
by the end of August, and fortunately so since the basis eroded dra-
GRAIN HARVEST
BREAKDOWN
16
We are still confident that corn basis will continue to strengthen at a
rate that will more than justify storage, but with that being said it will
take patience with no guarantees. It is critical that we think beyond
the flat price and look for opportunities to price futures in the form of
a HTA contract and consider the use of options.
We are always available to explain different marketing strategies and
what pricing tools we have available for not just our grain farmers, but
feed customers and cotton farmers as well.
Please be watching the mail, as we will have marketing meetings
this winter and spring in the form of updates as well as educational.
We hope to see many of you there. Praying for favorable weather to
get cotton out of the field and much needed field work completed.
5,267,626
bushels of
corn
59,466
1,551,246
soybeans
milo
bushels of
bushels of