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Hedge-to-Arrive Contracts Make for a Great Marketing Strategy, Successful Marketing Newsletter Says

2020 and 2021 could have profitable price levels, analyst says.

Corn planting continues to fall further behind. The USDA reported on Monday that just 23% of the U.S. corn was planted. This is 20% behind the five-year average of 46%.

When prices are low, we often see basis levels tighten. Farmers are less willing to sell when futures are carving out lows on the charts, so elevators and ethanol plants have to entice selling by offering an attractive basis. If you have bushels left to sell, doing a hedge-to-arrive contract is a great strategy.

Here is this week’​s Successful Marketing Newsletter.

The last thing on your mind when prices are low is to look at deferred months and consider making sales. I am not saying now is the time to make those sales. However, I am encouraging clients to look at 2020 and 2021 for profitable targets.

Fund managers are holding a record-short position across the grain sector according to the most recent CFTC Commitments of Traders report last Friday. This sets the stage for a meaningful rally if the bulls can get a headline or two to go in their favor.

Here is this week’​s Successful Marketing Newsletter.

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