Ottawa Valley, Eastern Ontario | OK, Here is the background on my operation. I'm just a small operator (100 acres)and I have a full-time job off the farm in agri-business so I don't depend on farm income for my livelihood. Still I like to market as best as possible as it is nice to have some extra money to help kids with university and pay some bills and maybe go on a holiday somewhere warm in the winter. I have all corn this year and I am approx 60-70% sold. I have no storage on the farm and I have never been a big fan of storing at the local elevator because I think the only person that makes money on that is the elevator. I can take a basis contract for the corn that is not contracted which gives me 75% of my money up front and you can price the contract out later over whatever month you choose.(i.e Mar, May etc) Our basis locally sucks.( -30 to -40 over Dec) Should I take a basis contract for the unsold corn with the thought that Chicago price level will get better over the winter or should I dump the balance at harvest? I keep hearing that yields in the corn belt are going to be maybe below average so right now I am leaning towards basis contracts. What do you guys think? Thanks in advance. |
Looking for advice on corn sales
