An overview of corn and soybean marketing including the four basic marketing tools: cash sales, forward contracts, futures and options.

Presented by Chad Hart, Extension economist

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Crop Marketing 101 series

ANR Extension Plus

1) Introduction to Crop Marketing
An overview of corn and soybean marketing including the four basic marketing tools: cash sales, forward contracts, futures and options.

2) ISU Crop Marketing Information
Web-based resources from Iowa State University…


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1) Introduction to Crop Marketing
An overview of corn and soybean marketing including the four basic marketing tools: cash sales, forward contracts, futures and options.

2) ISU Crop Marketing Information
Web-based resources from Iowa State University to help market crops including fact sheets, spreadsheets and the Iowa Commodity Challenge all contained on the ISU Ag Decision Maker web page. Other sources of information include the Iowa Farm Outlook newsletter, Grain Marketing e-Course and ISU Extension and Outreach Farm Management Specialists.

3) Basis, Futures Carry and the Cost of Storage
Learn about crop basis, futures carry and the cost of grain storage. Compare on-farm storage to commercial storage costs.

4) Market Fundamentals (Supply/Demand)
Examine the balance between crop supplies and crop demands that determine both futures and cash prices. Review of the major USDA crop reports that provide fundamental information.

5) Technical Chart Signals
Examine chart signals on futures charts such channel lines, sell and buy signals, resistance and support levels and moving averages.

6) Seasonal Price Trends
Review corn and soybean price patterns that repeats themselves with some degree of accuracy year after year in crop markets.

7) Crop Marketing Strategies
Learn to use a crop marketing matrix based on your expectation for futures prices and basis to determine appropriate strategies and tools.

8) Marketing Tools: Futures
Review the role of futures contracts traded on the Chicago Board of Trade (CBOT) farmers can use to reduce crop price risk by hedging.

9) Marketing Tools: Options
Understand the basics of both put and call options used for managing futures price risk. An option is the right, but not the obligation, to buy or sell an underlying futures contract.

10) Developing a Crop Marketing Plan
Learn how to put together a proactive strategy to price your crop. Such a plan might include your cost of production, financial goals, cash flow needs, price objectives, time objectives, grain storage capacity, crop insurance coverage, anticipated production and appetite for risk.

 

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