How to Approach Your 2019 Grain Marketing
Ready for some good news for a change? This was a challenging year for markets, but if seasonal trends hold true, we may have weathered the weakest months. Opportunities have come around again to jump on spring prices for some of your 2019 crop.
Because stronger markets typically happen early in the crop year when you’re busy putting that crop in the ground, planning over the winter months is a good habit. And not just inputs, but some beginning grain marketing strategies as well.
What goes into a plan and what are easier ways to set and track your target prices? That’s the topic of Episode 2 of our podcast, In the Driver’s Seat. We first posted this podcast last spring, but it’s so relevant to this time of year that we’re bringing it back to your attention.
Joining us are Pat Kroese, Sales Manager of the farm management software GrainBridge; and Nate Brabec, Territory Integration Manager for ADM in Nebraska.
See a transcript of the interview here.
Once you’ve sketched out a plan, spring contracts are a good way to start capturing your price targets. Two options from ADM to get the ball rolling are Average Seasonal Price (ASP™) and ADM AdvantageSM Expert. Don’t miss their sign-up deadline of January 25.
Here’s a quick introduction to each one:
ASP for corn participates in the market from February through June with an equal portion of your enrolled grain automatically priced every day. That means that at the end you earn the average futures price over that time period. You set the delivery window and location and set your basis. ASP for corn has outperformed the harvest price eight out of 10 years.
For soybeans, the time frame is later: ASP for beans enrolls now through a deadline of May 17 and your enrolled beans are priced in June and July. The soybean ASP contract has beat harvest prices six out of 10 years.
Since ASP prices automatically, a good complement is active contract management by a grain marketing expert. That’s ADM Advantage Expert. You choose one or more of our experts—Richard Crow, Kevin Van Trump or our own ADM trading team—to watch the markets and make pricing decisions on your contracted bushels.
When you’re in ASP and ADM Advantage Expert, we send you weekly performance reports by email, so you can track their progress. This performance is a helpful benchmark for sales you make on your own.
As you look ahead to a new crop year and take on risk again, be proactive in your grain marketing and start earning on your new crop while you’re planting it. Don’t miss the January 25 sign-up deadline for ASP and ADM Advantage Expert.
Past performance is not indicative of future results.
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.