Consider a defensive approach to grain marketing

The chief commodities economist with StoneX Group says farmers should consider a defensive approach to grain marketing as commodity prices remain lower than previous years.

Arlan Suderman tells Brownfield “it’s not necessarily how much we can make, but what can we do to defend the equity we’ve built in our farms in recent years, being ready to accept those prices, even if we don’t like them.”

Suderman says strategies to re-own commodities might be something for farmers to consider, in case there’s unexpected strength in demand. He also says to take advantage of good basis opportunities.

“That’s one of my concerns here over the next 60 days. What happens with the basis when these big crops all come to town at one time?”

Suderman says local elevators will move commodities as fast as possible, but there could be some backups for some along the Mississippi River as river levels get lower.

Source: Brownfield