Due to poor prices and high basis levels, farmers are choosing to store unsold portions of this year’s crop. While there is uncertainty in the commodity markets, there is opportunity. Once the crop is in the bin, what can farmers do? “Corn probably provides the best opportunity,” says Advance Trading Risk Management Adviser Tommy Grisafi. “Take advantage of some of these carries, even if your selling soybeans all the way out to July. There’s a lot of carry in the market.” Moving into renewal season, the biggest concern for both bankers and farmers is cash flow. It becomes a major factor when marketing unsold crop. “Knowing every farmer wants to sell above their cost of production, I can tell you a huge percentage of the crop will get sold below due to cash flow needs,” says Grisafi. “The banks are going to want their money back. It’s best farmers start making marketing decisions before the banker does.”
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