As farmers consider ways to market the crop, Innovus Agra LLC farm management coach Bret Oelke says to look at opportunities to sell the carry. There is opportunity in corn, soybeans and spring wheat. “The further out you go within the crop year, the futures prices are higher than the month previous. That’s the carry in the market. You have the ability to look forward and either sell the carry with a hedge-to-arrive contract, a cash forward contract or by selling a futures contract.” If farmers need cash now, Oelke says there are ways to adjust their marketing plan. “You can sell the carry and convert the operating loan into a marketing loan. The other thing growers can do is seal their grain, put it under a CCC loan and pay the loan back once the grain is sold and delivered.”
Subscribe to RRFN
Get a weekly digest from RRFN to stay up-to-date on all the latest news in agriculture.