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Jesup, IA | "I worked at a country elevator for about 3 years.. I was the grain merchandiser for a mom and pop single elevator facility. Near the end of my tenure I wanted to find out who did the best job.. so I ranked the average prices recieved by producers.. Was it the guys who sold early and replaced with calls? The forward contractors? etc... The guys who subscribed to marketing services and spent a lot of time on marketing?
Nope.. It was a Grandpa that didn't care.. You could tell him with 100% certaintude that the markets were going to go down and it didn't faze him. "Ya'll young bucks haven't lived through the 1930's when they closed the banks.. etc.." Again it was a different time.. A big Wheat rally for the year was like $.30 or maybe $.50.. mostly sat on loan rates."
Just asking Jon, were you made privy to these producer's hedge position? I sell grain all the time without regard to the flat price. Right now I'm selling corn to Cedar Rapids at option, but I hate the flat price in the mid $3.50's. I'm lifting a hedge put on last summer at $4.20. So does my cash merchandiser know I'm getting a net result above the flat price.
PS: Too bad I just did 10% of my crop at the $4.20. Hindsight is 20/20. | |
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WE WILL HAVE RALLIES !!!
