Grain Marketing

THE GRAIN MARKETER
Grain Marketer brings you helpful articles and smart resources geared towards the latest grain market news, trade statistics, analysis and world production estimates for the international grains industry.

January - February

gather market information from several sources
analyze market outlook and supply - demand statistics
monitor contract prices and basis levels
calculate cost of production and break-even prices
make preliminary crop selections and seeding intentions
look-in attractive special crop prices with a production contract, or deferred delivery contract



March - April

update and revise market outlook
set target prices for non-Board crops
monitor basis and futures prices for pricing opportunities
lock-in "spring premium" with a deferred delivery contract
with a "short" hedge futures contract
uses futures option
price protection contract (minimum price contract with a grain company)
make final crop selections and seeding plans

May - July

watch for pricing opportunities if the market rallies during a mid-summer drought scare. Be ready to lock-in the price when the market hits your target price
short hedge on futures market or put option
deferred delivery contract
monitor the basis and sell the remainder of last year's grain
revise and update market outlook/price forecast

August - December

normally store non-board grain until the basis drops
market grain when you lift "short" hedge
revise and update your target price, market outlook
market grain when the basis is narrow, and replace cash grain with a long futures (business speculation) if market rallies

January - July (Year 2)

revise market outlook, revise target prices
monitor basis, and market remaining inventory when basis narrows
use business speculation when appropriate, or use a "call" option as low risk method to take advantage of a price rally after grain has been sold. (For more information on Futures Options refer to SDAF publication, "Understanding Futures Options" or contact the Winnipeg Commodity Exchange.)
begin to develop a marketing strategy for the next crop