Madelia	Corn	Soybeans
Change	Bid	Change	Bid
May 12	10.50	6.48	-33.00	13.60
June 12	10.50	6.48	-33.00	13.60
July 12	10.50	6.48	-33.00	13.60
August 12	10.50	6.44	-25.00	13.12
October 12	8.75	4.99	-18.25	12.24
November 12	8.75	4.99	N/A	N/A
December 12	8.75	5.01	N/A	N/A
January 13	7.25	4.99	N/A	N/A

Winter 2011 Grain Marketing Update

Published On:1/23/2012
Author:Ryan Brandts and Brett Annexstad
Categories:Grain, Admin, Feed/Grain

With harvest wrapped up and the winter months settling in, it’s time to take a look at your current marketing strategy. We have seen a drop-off in commodity prices from their highs before harvest. We have seen futures drop from $7.00 before harvest to the current $5.00 futures. Cash values still remain in the mid $5.50 range with October 2012 cash prices breaking below the $5.00 mark. We have also seen historically low basis levels for post harvest delivery. With all of the volatility in the markets we want to make sure you have a sound marketing strategy moving forward.

The markets have shifted their focus to the 2012 acreage needs and what the January 12th crop report will say. Corn and bean prices have declined since the November USDA Crop Production Report, which showed smaller forecasts for the size of the 2011 crop. With this current decline in prices, many farmers have been hesitant to sell bushels. South American crop conditions will play a large role in the market levels going forward this winter due to the record level of production this year. Current local demand remains strong with ethanol production at levels much higher than last year, as well as competitive rail bids. Spreads this year were less than ideal which forced more than normal volumes of bushels to be delivered in November and December.

With current markets values, we have been encouraging producers to take a look at current basis levels and to acquire coverage for the 2012 crop year. We want to ensure that farmers are making sales based on where their break-even levels are, and not based on hitting the contract highs. Having a sound marketing strategy is the key to your continued success and profi tability. As we go into the holiday season, don’t lose track of the markets or miss any opportunities. Please feel free to give either of us a call at anytime to go over marketing strategies and any questions or concerns you have with your marketing decisions.