Happy New Year. Here at National Farmers our hope is that all farmers had a joyous holiday season and a terrific end to 2018.
People commonly create a New Year’s resolution list. Finances routinely make the list. Building upon forward contracting, improving communications between the farmer and marketer, continued dedication to staying current about market knowledge and conditions and improving our ability to do what it takes to achieve more together are ways we see to improve our financial services in 2019. Let this year be better than last.
As we ride the grain marketing express into 2019 remember the crop markets have been year-year-year hit with much production, increased competition from other nations and changes to government programs. Corn, soybean and wheat yields keep finding new highs. China, Brazil, Argentina, Russia, Canada and Mexico all continue to make ag news as improving production practices and policy changes, seemingly targeting the success of the American farmer, are implemented.
In the previous National Farmers Magazine issue, President Paul Olson said we are enduring some of the most challenging times in production agriculture that he has ever witnessed. When a challenging problem is recognized, reviewing previous ways of fixing the problem may be a way to find a solution.
Farmers that have used Grain Marketing Plus in the past know what has and has not worked. We want to know your praises and concerns so that we can make tweaks to better service you. For farmers not using our services, we want to know what you like best and least about your current marketing efforts.
We’ve heard a lot about accumulators, average seasonal market offerings and option matches. Grain Marketing Plus strives to keep marketing organized and planned out so outstanding sales to your preferred delivery locations can be completed. Market smart with Grain Marketing Plus is our slogan.
Grain Marketing Plus uses a multiple sales framework. At least a third of these sales should be made through GMP Forward Contracting. The fact that over the last three years prices off futures contracts linked with harvest deliveries for corn and soybeans have been greater during the first half than last half of the calendar year is one reason why we recommend using GMP Forward Contracting.
Second, carries in the market are large. Third, GMP Forward Contracts have proven valuable and they diversify sales in the event of a large production year. Start now.
Don’t let your New Year’s resolution lose steam after the first month. Call right now to further your market planning and execution. Cheers to a successful and prosperous New Year.
Market comments within are based on circumstances as of Dec. 12. Market situations change rapidly.