It’s times like these, when the markets behave opposite of what we expect, that present a very challenging and, admittedly, frustrating situation when it comes to grain marketing. It’s also at times like these an assessment of one’s marketing approach can be helpful. As the well-known and successful businessman Henry Ford said, ‘If you always do what you’ve always done, you’ll always get what you’ve always got.’ Diversifying your marketing can lead to a different and more positive outcome. One such way is by utilizing marketing alternatives such as the Seasonal Index Price (ASP) and the ADM Advantage contracts.
Specialty contracts such as the ASP and ADM Advantage just completed pricing old crop bushels against the July futures. These contracts finalized at prices that are 30-40 cents higher than the current cash market on corn and approximately $1.50 higher than the current cash market on soybeans. On the new crop side these contracts are performing very well against the current market. Also, the ASP on harvest corn is hovering around $4.00 December futures and fall soybeans are at approximately $10.10 November futures. ADM Advantage contract is performing better than the current new crop futures as well. These contracts assist in taking the emotion out of marketing and building in disciplined marketing of your grain. By utilizing another method of pricing your crop, you can see how diversifying your marketing has it benefits rather than waiting to hit the ‘home run’ and ending up undersold. Call your local CFC
to discuss these alternatives in more detail to assist you in diversifying your marketing strategy.