Marketing 101A
Forward Marketing 101A
Determine your acres. Multiply the acres by your APH, or proven yield. Multiply this number by .70, or 70%. Divide this number by 4.
Make 4 offers on corn, 4 offers on soybeans.
Corn
1/4 @ $4.25/bu for October delivery
1/4 @ $4.60/bu
1/4 @ $4.90/bu
1/4 @ $5.20/bu
Soybeans
1/4 @ $11.50/bu for October delivery
1/4 @ $12.00/bu
1/4 @ $12.50/bu
1/4 @ $13.50/bu
Review your offers and contracts on June 15. If the offers have been filled, you are in good marketing shape. If your offers have not been filled, it is time consider revising your offers.
Tongue in cheek tidbits:
No customer has ever died leaving a new crop contract behind.
He who picks bottoms ends up with a handful of ****.
The trend is your friend.
Short crops have long tails.
Get a hunch, buy a bunch.
Don’t forget which side you are cheering for.