Harvest Time: most certainly my favorite time of year. In addition to harvest, High School football playoffs are getting started. College football games in late October, and November begins to separate the pretenders from the contenders. You can’t beat a trip to the apple orchard as the apples I buy at the store, just don’t seem to stack up. As you drive through the country, the fall colors and the contrast between harvested fields and those yet to see the combine, undoubtedly present some unbelievable photo opportunities.
For farmers, it represents the payoff for the months of planning and hard work invested in our business. It feels like a significant percent of this crop is unpriced and will be stored away hoping for better opportunities down the road. Some of this crop was sold ahead to either be delivered out of the field or stored and moved at a later date.
In a blog I authored nearly a year and a half ago, I talked about the marketing window and the advantages of looking for early opportunities to sell ahead, or “open up” your marketing window. If none of this year’s 2016 crop is sold, the opportunities to sell has realistically been limited to the next ten months as most want the previous year’s crop sold before they harvest the next. That feels like it places a lot of pressure on each and every sale.
This summer when the market finally gave us an opportunity to sell remaining 2015 crop, it also gave us an excellent opportunity to sell 2016 and 2017 crop. We had over a month to lock in $4.00 or above December 16 futures and nearly two months at $4.00 or above for December 17 futures. December 17 futures recently made a push back towards $4.00, stalling out less than five cents away, while December 18 futures recently advanced above $4.10.
With ProEdge grain contracts, and the ability to roll contracts forward and pick up market carry, $4.00 December hedges can mean $4.00 cash for deferred delivery months. Give us a call, place some offers and let us help take some of the pressure off each and every sale.
On a side note, are the Huskers contenders or pretenders? We are about to find out. I will stick with my prediction from five weeks ago and my 10-4 final Husker record.
I also believe 108 years is long enough to wait for a Championship. Go Cubs.