Marketing Awareness
Corn and soybeans are both carry markets. The deferred months are trading at good premiums compared to the nearby futures contracts. 2018 cash corn bid is $3.23, new crop 2019 corn bid is $3.58/bu, or a 35 cent, or 11% premium. 2018 cash soybean bid is $7.38, new crop 2019 is $8.25/bu, or a 87 cent, or 12% premium. The 2019 new crop bids are much closer to profitable levels.
Producers would do well to plan their 2019 grain sales. My suggestion would be to market 70% of APH yields, split into thirds. Offer 1/3 of these bushels at $3.70/bu for 2019, 1/3 at $3.90/bu and 1/3 at $4.10/bu. If the price were to go higher than these levels, producers would still have more bushels to sell, assuming normal yields. I would suggest a similar stategy on soybeans, offer 1/3 of the bushels at $8.50/bu, 1/3 at $9.00, 1/3 at $9.50/bu. If these offers do not all fill by July 5, 2019, producers should reset offers to reflect market conditions.
Forward marketing grain is an option that does not cost the producer money. Planning for and selling grain at profitable levels are important tasks and must be given priority.