Fixed Price Forward
Also known as a “Hedge to Arrive”
- Keep elevator delivery location open
- Wait for a a stronger basis
Cash Crop Growing Seasons (Part 2)
How weather and geography affect crop cycles
- Within each crop, production timing varies
- Every crop region plants and harvests at different times
- Those times change with the weather almost every year
Considerations When Selling Grain
What factors influence grain sales?
- Everyone uses different benchmarks for good grain prices
- Consider WHEN to sell grain seasonally
- What information determines how and when to sell grain?
- What type of Pricing Tool will you use to make grain sales?
How Macro-Economics Affects Sales Timing
How the broader economy can affect grain prices
- Grain is traded on international markets
- Inflation, interest rates, and economic recessions play a role
- Commodity grain prices fluctuate based on these factors
How Price Moves After Critical Events
USDA reports and “Black Swans” move grain prices
- Critical events like USDA crop reports, weather forecasts, black swan events
- There are expected outcomes and unexpected outcomes
- Unexpected outcomes tend to move grain prices more
How To Read Candlestick Charts
Candlestick charts can look intimidating at first…
- Technical grain traders use candlestick charts
- They contain lots of information about grain markets
- Don’t be afraid! Anyone can read these charts
Straddles & Strangles
More information on advanced grain trading mechanisms
- How these grain trading strategies anticipate volatility
- What situations these strategies are used for
- Events with potential volatility like USDA crop reports and “Black Swan” events
The Speculative Money Cycle
How do “The Funds” inject cash into grain markets?
- Speculators inject cash into grain markets
- That liquidity allows Farmers to easily enter and exit market positions
- Most money flow exchanges between speculators
- How money flows from Farmer producers to end-users
Types of Grain Marketing Advisors & Commodity Brokers
Which is the right grain price advisor for you?
- Every Farmer needs a different type of grain market advisor
- Every grain advisor has a different market bias and strategy
- How to decide what type of grain market advisor is best for your grain marketing strategy
Types of Buy & Sell Orders
Different ways to capture grain price targets
- Order types, not just “At the Market” or ATM
- Sell Limit/ Buy Limit
- Sell Stop/ Buy Stop
- Situations on when to use these market execution orders
Who are all the players in the grain markets?
- How are grain contracts traded?
- Exchanges like the Chicago Mercantile Exchange (CME) and Chicago Board of Trade (CBOT)
- Clearing firms holding margin money/ performance bonds
- Introducers and Farmers setting grain prices
Types of Basis Markets
A look into cash grain basis markets for Farmers
- Different types of grain buyers, elevators, and end-users
- Competition in local cash grain markets and how they affect basis on the farm
- How transportation affects basis and delivery decisions on your grain
Corn’s Supply Chain
How is commodity Corn used and where does it go?
- From the Farmer to the end-user
- Grain transport channels, supply chains, and basis
- Ethanol plants, Dried Distiller’s Grains (DDGs), and feed grains
Soybean’s Supply Chain
How are commodity Soybeans used and where do they go?
- From the Farmer to the end-user
- Grain transport, supply chains, and basis
- Soybean crush, Soybean oil, Soybean meal, livestock feed, and biodiesel