Corn and soybean markets both made nice moves higher during the month of April. For the month, old crop soybeans advanced $1.35 with the new crop contract adding $1.05. Corn, after taking a major setback following the March 31st prospective planting report, was able to add 55 cents to old crop and 45 cents to the new crop December contract.
The December corn contract only traded above $4.00 on two days during the month and advanced as high as $4.09. This presented an opportunity for most to make new crop sales above the cost of production. The November soybean contract traded above $10.20 for only a short period on one day during the month. Depending on the markets you sell into, this provided cash harvest opportunities of $9.35 to $9.50.
It is impossible to always “sell the high”. In fact, we will not even know the high until the full story is written. So, for now, we must focus on making profitable sales and sell in percentages. Diversify your sales using different types of contracts.
The markets seem to be heading into May with some momentum behind them. South American weather has provided some fundamental reasons to add premium at this time. As of May 1st, the US corn crop is estimated to be 45% planted and 8% of the soybean crop is in the ground. Corn is well ahead of the five-year average of 30%. Nebraska and South Dakota are the notable states behind the average pace. Nebraska only has 26% of the crop in compared to 45% last year and a five-year average of 31%. Don’t forget we can plant a lot of corn if given just a short planting window.
This time of the year often provides the best marketing opportunities. Stay on top of your sales and use your ProEdge Grain Specialist to help you. We can place offers at levels you select. We can help you to understand non-traditional type contracts to incorporate into your marketing plan. Every time you make a sale above your cost of production, your break-even on the balance of your crop comes down.
We understand this is a very busy time of year and want to wish you the best as you work to get your crops planted and sprayed. With planting behind schedule, some will have hay to put up before row crops are planted. Your ProEdge Grain Specialist is only a phone call away, and we would be glad to help with your grain marketing in whatever way we can.