Tidbits, Q&A: Marketing Plans 4/27/25
- Wright team
- Apr 27
- 5 min read
Q&A: Marketing Plans
A Prospective Client asked on 22 April 2025:
"I am getting your trial emails and have a couple of questions. My marketing plan is to store as many bushels as possible on farm and market them as old crop between 5-12 and 6-22-25 selling ~17% each week for 6 weeks, maybe every Wednesday at noon? When selling old crop, do I just sell cash price for the nearby month and deliver during the six-week period described above?"
We usually recommend you separate the day you lock-in the futures from the day you lock in the basis. However, when farmers are planting corn is often the high for basis and futures, but basis can move substantially in May and June. When you asked about selling old crop in May and June, our thought was a forward contract to lock-in basis and futures at the same time. But then we checked Iowa Falls Poet last year's basis every week from 5 April to 28 June, we changed our mind. Here are the numbers:
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