August 29, 2023
Steve Meisch, a grain sales manager with CHS, explains the forces affecting crop market volatility and the benefits of making crop marketing plans before harvest.
This season’s weather patterns are affecting both expected yields and markets. Steve Meisch, a grain sales manager with CHS, describes how a flexible crop marketing plan can help navigate the volatile market and save time during harvest.
Weather impacts crop variability
Varying degrees of drought and excessive heat are affecting much of the U.S. this year. Resulting crop production variability should have farmers evaluating the flexibility of their grain marketing plans, advises Meisch.
“Having different marketing regions to flex delivery into during harvest is crucial as the changes in grain lines and grain hours receiving at elevators can be impacted by breakdowns or weather,” says Meisch. “Having that flexibility could save time.”
Grain marketing tools guide planning
Meisch recommends using flexible marketing tools to sell crops.
“Hedge-to-arrive contracts enable you to set basis later, allowing you to deliver anywhere you want during harvest. Another tool is an average marketing plan. It’s a simple and underutilized strategy.”
Meisch reflects on the effect of weather on commodity prices. “Looking at the current corn and soybean markets, there’s a little bit of carry, which is great to see. I think there will be opportunities to price grain before or during harvest.”
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