Get Offers Working
“The thing about farming,” says Matthew Kroes, ADM Origination Specialist in Indiana and Illinois, “is that there’s always something else to do—always something to take you away from selling your grain.”
That’s where offers come in: letting a grain buyer know you’re willing to sell some bushels at a firm price or a price range that you set. This proactive marketing tool can help you make profitable sales without having to watch the market like a hawk.
Firm offers automatically turn into a contract when the market hits a specific price point. This can happen when you’re asleep—a key advantage in a world of volatile 24/7 grain markets. It’s not unusual for an offer to trigger on the overnight market.
Tips for an offer strategy
Be intentional: Do some homework and aim for a profit margin on a meaningful portion of your crop. Think in terms of percentages versus bushels, so the sale has impact on your bottom line.
Stay flexible: The market may hit $3.99, but not $4.00. Consider price ranges and putting in soft offers. That way, you’ll be alerted when the market nears your offer and you can decide whether to sell. Be flexible—don’t hold out for pennies and miss out on dimes.
Communicate: Make a phone call to your ADM representative, or use the ADM Offer Management app. It’s handy for managing multiple active offers at a time.
“By taking emotion out of the sale, an offer is a good way to make sure you cross the goal line.”
– Matthew Kroes, ADM Origination Specialist
Stick to your guns: Be willing to adjust if conditions change, but don’t pull your offer when you think markets are heading higher. Your target made sense for your bottom line, so grab that sale and offer the next portion of your crop at a slightly higher price. This “laddering” technique takes advantage of rising markets, but keeps you disciplined.
“The best thing about offers is they’re automatic,” notes Kroes. “Too many farmers move the goal posts when the market moves. By taking the emotion out of the sale, an offer is a good way to make sure you get your touch down.”
See more about using the ADM Offer Management app, or download it now from the App Store or Google Play.
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ADM is providing this communication for informational purposes, and it is not a solicitation or offer to purchase or sell commodities. The recommendations in this communication do not take into account any particular individual’s or company’s objectives or needs, which should be considered before engaging in any commodity transactions based on these recommendations. The sources for the information and recommendations in this communication are believed to be reliable, but ADM does not warrant or guarantee the accuracy of the information or recommendations. ADM or its affiliates may hold or take positions for their own accounts that are different from the positions recommended in this communication. The information and recommendations in this communication are subject to change without notice.