|
EC SoDak | For instance, my blueprint is somewhat simple and what I call “gel” vs how some use a more liquid plan. Meaning you need to be able to mold your marketing plan to current dynamics, but should still hold the same basic structure.
I like to be hedged roughly 80% by early/mid July, hedge a little more as I’m more comfortable with the crop, and then leave some bushels as my “future opportunity” bushels. When the price is right, typically during the summer run up, I like to get upwards of 20% hedged for the next years crop. I try to use typical seasonal price patterns for when to hedge vs the actual price, but price can be a leading factor as well. This year is a good example, I was much more heavily hedged on beans earlier on than normal. But 10.XX beans knowing Trump’s threats, Brazil had a good crop and we would increase planting here (the gel part of my plan) was too good to pass up. Granted, those rumblings from the technical guys calling for higher prices was tempting....
As you all can tell from my postings on here, I’m not overly confident this trade deal will be fully resolved very quickly (but yes, I believe they will be buying some beans but not enough to get historical basis levels) so I’ve already set basis on my SB before it got too wide.
Edited by SoDak Farms 9/2/2018 17:56
| |
|
Soybean basis
