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| Paul, I reread my original post several times and I don't think I said that I want the market top for 100% of my production. Well, actually I do but I know that is impossible of course.:) I did not mean to imply that. In fact, I have 30% sold already, with another 30% covered with weak puts. I asked about UNPRICED bushels at this stage of the growing season. I am sick of the "could have--should have" game after the weather premium is gone from the market was my point.
I don't know if I agree with your statement that selling small increments spread out over time will get you better that average price. It seems that logic should tell you that you will get you EXACTLY average price ( plus or minus a few cents) with your stratagy which I don't think any of us should be shooting for. I agree fully that to survive in commodity production, we need to do two things--produce at a lower cost than the other guy and/or sell at a higher price. But the million dollar question what is the best way to go about getting a truly ABOVE average price. Thats what I wanted discussion about.
However, right after I hit the send button on my orginal post, I didnt really think that would happen ( that we would get a good discussion going on the endless marketing options out avaiable to us ) because it dawned on me how personal most farmers probably consider their own marketing. They want to boast about their "home runs" and hide the times that they sold early at a lower price. I do not think that way. We need to stop "beating ourselves up" over marketing losses by realizing that the times we sold too low, we willingly sold with the information we had at the time. It was the correcty decison then, thats why we sold.
Also, I want to state that just because one considers himself a "simple man" does not mean that he cannot use puts, calls, or any more advanced marketing techniques. If one is "smart enough" to figure out how to run a tractor and planter correctly, with a little effort he can easily grasp the concepts. I encourage those of you out there that think they are too complicated to do a little research on the subject. In the coming years with volitle prices, I think it will become evident that you will need these tools to compete with the farmer down the road.
Edited by sparrell 5/17/2007 10:39
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Best new crop corn stratagy?
