A proactive approach to grain marketing

A market analyst says farmers need to take a proactive approach to grain marketing.

DuWayne Bosse with Bolt Marketing says the U.S. is due for a high yielding crop soon and while it’s too soon to know the final yield for this year, farmers should have some grain already sold.

“Farmers need to have sold at least 25 to 33% and the more aggressive cash-only farmers that have everything go to town should probably be 50% sold,” he says. “Soybean prices look nice right now and my corn price targets range from $4.74 up to $5.50.”

Bosse says he’s paying attention to U.S. crop conditions and how they change in USDA’s weekly crop progress reports moving forward, because the trend matters.

“If we start with a high crop conditions report and then, we trend lower, I tend to take a few bushels off my national average yield. And for the opposite, if we start low and go high, I tend to add to the yield. Don’t look at the exact number, look at the trend of what happens this summer. I think it weighs on markets a lot.”

Bosse says weather changes, like a La Nina, can also affect national yield.

Source: Brownfield