2021 Spring Insights - Flipbook - Page 12
Make Sales for Profit, Not for Price
Create a strategy for selling 2021 crops
Sam Lowers, Regional Sales Manager
Since the middle of August, old
crop corn futures have rallied over
$2.00, and old crop bean futures
have rallied nearly $5.00. One of the
biggest factors for the rally has been
the record amount of Chinese buying
of both commodities. As you can
see in the charts above, current corn
sales to China are approaching 700
million bushels. The previous record
export number to China was in the
2011/2012 crop year, which finished
the year at just over 200 million
bushels. Current soybean sales to
China are sitting around 1.276 billion
bushels, and we are on pace to break
the previous export record to China
which came in 2016/2017. That year,
1.341 billion bushels were exported to
China.
Unfortunately, with China coming
to the table strongly during harvest,
many growers sold both corn and
beans early in 2020. As a result, many
producers are now questioning when
to begin selling corn and beans in
2021. The simplest recommendation
to this question is to sell at profitable
levels. That may sound easier said
than done, but the recent rally in
Another tool you may find beneficial to your operation is
the RV Coop Grain App, which is available for download
in the Apple App or Google Play Store.
If you already have an account with River Valley
Cooperative login is easy! Simply type in your cell phone
number, and you will receive a text with a code. Once you
receive the code, enter it to log in. Inside the app, you will
find cash bids, contract and settlement details, real-time
scale tickets, and much more. We believe it is a great tool
that will help you make real-time decisions easily and
quickly in the palm of your hand!
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the markets has given growers the
opportunity to do so.
We will all remember the rally in the
corn and soybean markets during the
harvest of 2020 and into 2021, but we
cannot forget the global pandemic that
shocked the commodity markets this
time last year. Use your crop insurance
guarantees, book your inputs, set price
targets at and above your breakeven,
and never be afraid to reward a rally.
To discuss or create a marketing
plan tailored to your own operation,
please give your local River Valley
Cooperative grain originator a call.
,