Grain marketing is an ancient trade, which has been used for thousands of years since 9000 BCE. It all began when farmers from that era would grow a little bit of grain and produce a lot of one type. In today’s modern world, it’s seen as a fast-paced commodity that billions of people all over the world eat and use. It also offers a potentially lucrative career for those who have an interest in it. Aside from the lucrative career it offers, grain marketing is how farmers can sell what they grow. You can check out Grainwise at https://grainwise.com.au/ for their grain marketing solutions.
Be Alert & Know the Changes in Prices
Since grain is a very important commodity and prices in this sector changes constantly, you should see what’s happening to the prices in your area by subscribing to your local grain elevator’s text messaging service. Most of the time, these grain elevator services will send a message three times a day with the current prices of the crops. If you’re a member or a regular customer of your local grain elevator, these services are free most of the time. So make sure to check these out to ensure that you have the current prices.
Always Track Your Basis
Your local grain buyer, which consists of an ethanol facility, feed yard, and local elevator, always use the future market to know what price to pay for the grain. You should be aware that the price stated is not the price they’ll pay you. The basis is what you call the difference between the futures market and the local price. So, for example, the corn price at your local elevator is $3.42/bu. but the nearby corn contract closed at $4.00. So the basis will be -$0.58/bu. These are set by each elevator, and it helps them take into account the cost of buying and re-selling grain for local supply and demand.
Know the Expense of Your Storage
One thing you need to put into consideration in grain marketing is your expense, especially your storage expense. You need to know your grain storage and handling because the longer you hold grain, the more the costs will eat at your earnings. Even if you store your grain on your farm, there will still be an expense. You can check your local elevator’s current storage fees and calculate your storage and handling carefully to avoid too many expenses. Remember to cut down on costs while maximizing your returns. That’s how you can make money while being able to save at the same time when you make enhance your grain marketing process.