Channel Grain Marketing Consultant
2019 is expected to be another challenging year to market grain. Fortunately, challenges typically bring opportunities. As I write this column before the close of 2018, we’ve already seen a few chances to lock in solid prices.
We generally see good opportunities to market both old and new crop during the spring, as few planting seasons go without some sort of hiccup. If we’ve learned anything in the past couple of years, it’s that those opportunities can come and go very quickly. Therefore, it’s important that we go into this growing season ready to act.
It’s imperative to have solid figures for cost of production and profitability. When we know the levels that will allow us to profit, devising a plan is much easier. When the plan includes price levels predetermined as fit to make sales, it is easier to move ahead with putting standing offers in place.
I recommend producers keep offers in place at levels they’re certain they can profit from…especially if selling 2019 crop. On the flip side, I see no reason to aggressively hedge upcoming production if margins are too thin to feel confident a profit can be locked in. However, if we get opportunities that assure your farm can call 2019 a profitable year, let’s be ready to act.