Marketing Your Corn Part VIII - 2010

By Mark Soderberg, Archer Financial Services

As of my last article, in early June-10, my recommended sales level for the 2009 corn crop was at 85%, with an average price of $4.50 basis the July-10 futures. At that time I had advised clients to roll any hedges they had remaining in the July-10 contract to Sept-10 when July-10 was $.11 under. This recommendation was changed to $.09, which was executed in mid June-10. I had also advised my farmer clients to remain patient and sell the remaining 15% when Sept-10 futures reached $4.25. To date this level has not been hit; therefore 2009 sales remain at 85%, at roughly $4.58 basis Sept-10 futures. In early June my recommended sales level for the 2010 crop was 10% at an average price of $4.40 basis the Dec-10 contract. At that point I had also advised clients to make additional sales of 5% at $3.85, $3.90, $3.95 and $4.15 also basis the Dec-10 contracts. To date the first three targets have been hit bringing 2010 sales to 25% at an average price of $4.10 basis the Dec-10 contract. At this point, I think it would be a good time to reexamine the fundamental factors which are driving corn prices and to review our marketing plan going forward. (more)