March 1st: GrainCents Corn Sales Update

This post serves as a timestamp on GrainCents crop sales positions. Also included is our rationale for the GrainCents crop sales position.

Good Afternoon!

2017/18 (old crop corn sales)

Increasing from 60% to 80% sold, selling 20% off the July 2018 contract OR the September 2018 contract

2018/19 (new crop corn sales) 

Increasing from 20% to 40% sold, selling 10% off the December 2018 and 10% off the March 2019 contracts. 

Click here to post your old and new crop corn on the FarmLead Marketplace.

Your posted FOB farm price should be equal to locally delivered prices and then negotiate lower from there.

Obviously, we also recommend you shopping the local options but there’s lots of corn bids on the FarmLead Marketplace.

If you are looking to just do a basis play at this time, on the new offer page, put in $0.01 in the price field and then indicate what sort of value you’re looking to negotiate from. This can be very regional dependent, but a good rule of thumb is to take the local basis value for new crop and take 10-15 cents / bushel off it and negotiate from there.

For the last few weeks, we had a few targets that we were looking for those got hit today. Specifically, this is what we were looking for with today’s closing price in brackets.

• May 2018: $3.85 ($3.863)
July 2018: $3.90 ($3.935)
December 2018: $4.05 ($4.048)
March 2019: $4.10 ($4.11)

This is our first sale of 2018 and the first in literally nearly 5 months! The price has been moving the right direction thanks to what’s been going on in South America. We’ve also seen international prices climb a bit, providing another catalyst for U.S. export activity.

While we’re still cognizant of upside potential because of Argentine production concerns, the better question to consider is how many times have you seen today’s price at the elevator in the past 3 or 4 years?

With this thought in mind, we’re recognizing these relative highs and we’re selling into strength.

For our 2017/18 old crop sales, we’re pricing 20% of production off the July 2018 OR September 2018 contract – this depends on your cashflow needs over the summer months. 

Keep in mind that there’s still 3 months left of activity for the July contract and 5 on the September but my guess is that any highs will be seen i the next 2-4 weeks (if not here already).

For our new crop sale, we’re pricing 10% of production off the December 2018 contract and 10% off the March 2019 contract. If you want to make it easy, I’d recommend doing everything off the December for cashflow purposes. 

End all, be all, we’re selling into this strength and managing the exposure of our unpriced corn to the market. 

Brennan Turner
President / CEO
1-306-715-4540 (cell)
FarmLead – North America’s Grain Marketplace

COMMODITY TRADING INVOLVES RISK AND MAY NOT BE SUITABLE FOR ALL RECIPIENTS OF THIS POST. Neither the information presented, nor any opinions expressed, constitutes a solicitation for the purchase or sale of any commodities. The thoughts expressed in this email and basic data from which they are derived are believed to be reliable, but cannot be guaranteed due to uncertainty about future events and complexities surrounding commodity markets. Those acting on the information are responsible for their own actions.

About the Author
Sarah Bader

Sarah Bader is a science communicator, dedicated to cutting through jargon and getting to the heart of the matter. A lifelong nerd, communications allows Sarah to share her love of science and tech with a wider audience. Sarah has a BA in Communications and Sociology from the University of Ottawa.

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