June Successful Marketing Newsletter Is Out
DES MOINES, Iowa — With the farm markets surging higher, Successful Marketing newsletter subscribers are getting multiple text alerts Monday from Al Kluis, Kluis Commodities, that sell targets are getting hit and farmers should consider pulling the trigger on old- and new-crop corn and soybean sales.
Are you paying attention?
This brings up a good point that is explained in the recently released June issue of the Successful Marketing newsletter.
Kluis describes in the newsletter that being a successful marketer means that you create a written plan and execute that plan.
“Both parts of the formula take time, but it is some of the best time you can invest in making your farm profitable,” Kluis writes.
“If you’ve been following my advice, then I can help you create a good plan. However, it is up to you to execute the plan you create. Make it part of your daily life. Take time early each day to get a market update and make sure your offers are in place,” he adds.
With the farm markets offering profitable prices, it is time to take note of the advice that Kluis has offered.
“I have watched grain prices rally back into a good profit zone. I have recommended a series of cash grain sales and made a lot of new-crop soybean hedges. I never look back when I have made a profitable sale. I do get some questions about why I made sale recommendations on soybeans earlier, since now the soybean market is more than a $1 per bushel over where I made my initial sales in April,” Kluis says.
Benefits of scale-up selling
“I will admit I have been amazed at how far and fast futures have rallied since the early March low. I am also very happy with this rally and what this does to all of my customers’ bottom-line profits for 2016,” Kluis says in this month’s newsletter.
With seasonal odds studies and analysis of long-term cycles projecting lower prices this fall, farmers should take note of the current market offerings. “When prices go up this fast, they usually go down faster. I would rather execute a disciplined marketing plan than wish I had some hedges in place when prices move lower,” Kluis tells Successful Marketing newsletter customers.
If there’s a setback to $9.50 to $9.80 in nearby soybeans, Kluis recommends buying some call option contracts to replace the earlier hedges.
“Secondly, don’t be concerned with the 40% sold for fall delivery. You were disciplined and followed your risk-management rules. Now, focus on getting price protection in place on the last 60%,” Kluis states to SM customers.
He adds, “Remember how you felt in late February? Then look to see what your bottom line is like if you get the last 60% sold with November 2016 soybeans trading at $11.02. Then look at what it would have been if you sold in February. You will feel better.”
So how do you make this work for your farm? Make some sales when these price targets are hit:
- July corn – $4.18 and $4.38
- December 2016 corn – $4.48 and $4.68
- July soybeans – cash sales are complete
- November 2016 soybeans – $10.98
- July CBOT wheat – $4.98 and $5.28