Virtual Grain Producer Meeting January 2021
GRAIN – SELLING FOR A PROFIT
The Landmark Grain team recently hosted Roger Gattis, Grain Merchandiser with White Commercial Corporation out of Kansas City, who spoke to our grain customers about how to stay proactive in the market.
While market conditions change, the reasons why farmers sell grain do not, so producers should exert more control over their grain marketing decisions. Selling for a profit, not because of logistics or cash flow needs, is the ultimate goal—and that can only happen if the grain is sold at harvest, regardless of when the grain will get delivered. Waiting until after harvest to market grain guarantees added cost and risk, while the market may or may not rise to offer a profitable selling level.
Purposeful grain marketing takes considerable effort if you want to overcome the common obstacles of marketing grain: confirmation bias, trying to find the signal in all the price direction noise, and shooting yourself in the foot, to name but a few. It also requires using the calendar and seasonal price activity to your advantage. Begin with the end result in mind, and focus on profit per acre instead of price per bushel. Doing this will allow you to take some of the emotion out of your grain marketing decisions.
Use free target orders and take advantage of our current rally to lock in some profit for your operation. “Like a lot of areas of life today, we had to look outside of the box to deliver a meaningful message in an effective way,” said Lacey Seibert, vice president of grain at Landmark. “Roger’s virtual message hit home and challenged our members to understand their seasonal marketing opportunities, set goals with a marketing plan, and identify targets that will bring value to their operations. These ideas are tried and true, and I look forward to seeing the success our members will have as they employ these principles on their farms.”
In case you missed it, here is the recording from last week’s Grain Producer Meeting!