If you look at commodity grains on a month-to-month basis over the past ten years, you'll see a general trend - prices bottom out right around fall harvest and peak as supplies shrink in the late spring/early summer.
While we're aware that this season may prove a little different due to external factors, industry experts are not denying that we could (possibly) see a glimmer of hope for corn coming soon.
Charts below: Price valleys and peaks tend to be consistent across the country, i.e., Nebraska and Tennessee's averages
IntelliFarms does not attempt to advise anyone on grain buying or selling decisions. We leave that to the pro advisors and economists. However, we are passionate about helping you have tools and data in place to capture the most money for your crop that you can at a given time. We don't buy into the fact that "prices are what they are." We believe that with data, you have the power to sell your crop for more than the market indicates is possible (and ideally, at a profit!).
But to do this, we believe you need to have a few things in place:
- A sound storage strategy. On-farm storage with controlled natural air drying capabilities offers you the advantage of holding grain for lengths of time until windows of opportunity arise, or to meet terms of contracts. According to a customer of ours, the worst two reasons to sell are that you ran out of money or out of storage. We are adamant that you see storage as a strategy to preserve the quality of your grain, and have it ready to go when profitable opportunities are present.
- A keen understanding of the markets around you. We're not talking just about the elevator down the road or in the neighboring town. We also mean buyers who may be 100 miles away (or more). By expanding your horizons, you may learn that there are markets further away that will churn a higher profit for you, even factoring in transportation costs. You may utilize a merchandiser or manager to help you track these market prices, or you may consider tools like CashBidManager to provide you with up-to-minute data on markets however close or far you want. This is what a customer of ours did when a well-known grain buyer showed up to his farm ready to haul off his grain at a lower-than-optimal price. Our customer checked his CashBidManager data and found that another buyer less than 90 minutes away was offering over a 60 cent higher price. He ended up getting the buyer on his farm to match that price and haul away his grain that day - and he told us that within a few minutes, he made tens of thousands of dollars in that transaction.
One thing we do when we're demonstrating how CashBidManager works is pull up a map and showcase all the markets within a 100-mile radius of a location. With all those red pins (indicating markets) in that radius, it paints a clear picture: Every day, all of those merchandisers and buyers wake up needing grain. Your grain.
We believe that with all that demand, you have the power to get paid higher than what market averages tell you. You can store, track and be ready to pounce when prices peak.
If you have any questions about storage technologies or marketing tools that IntelliFarms offers, please contact your IntelliFarms representative or our support team any time. We look forward to discussing how we can help you get more cash for your cash crop.