Flexibility needed for marketing grain in ’21

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Flexibility needed for marketing grain in ’21

Flexibility is key when it comes to marketing grain.  

University of Minnesota Grain Market Economist Ed Usset says farmers need to have a responsive marketing plan because of uncertainties.

“There are a lot of ways to build flexibility into that plan,” he says. “There are a lot of uncertainties with a lot of things we don’t know but at the same time you can still have a plan and you can start to take action.”

Advice he has is to…”timing wise, I’m thinking I want to get something done, I want to get something done early, and I want to get it done in the first half of this year—maybe slipping into early July.”

Channel Seed Grain Marketing Consultant Matt Bennett says flexibility is especially important this year.

“I have to stay flexible, I have to stay on my toes and don’t take anything for granted especially profitability,” he says. “I want to quantify (profitability) as much as I can and leave the upside open on some of it.”

Bennett says farmers have had the opportunity to lock in the best net profits seen in seven or eight years. But, he recalls in 2012 when some farmers sold too early without flexibility and really struggled.

“Yes this has been a phenomenal rally, but I want to hedge and I want keep some flexibility,” he says.

Usset and Bennett made these comments during the virtual 2021 Commodity Classic.

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