Looking at Corn pricing, it looks like we are in a corn pricing “flip of the coin” area. The 5 day moving average is converging with the 20 day and the market is trading right in the middle. If you are looking at a way to preserve revenue on corn you may be storing, we have a hedge on where we have built a floor that is 30 cents below the current March price, yet if we can get a $.50 rally you should participate in the move. Got doubts? It won’t cost you a thing to reach out to us to get our explanation.
I do not want to rain on any one’s parade, but unless we see a pop in some of these prices, the 2025 crop year is not looking too good. For example, the University of Minnesota has a direct expense per acre estimate for 2024 corn at $831.00 for Southern MN. Looking at a basis of .$50, today new crop local pricing is $4.03. With an APH of 205 bu, per acre revenue is $826.15. Not good.
Our consulting service includes building reports to reflect your initial financial outlook and then provide ideas on how to best structure a marketing plan to build a structure to prepare for the worst yet hope for the best outcome on the corn pricing “Flip of the Coin”. This can be accomplished before you sit with your banker, CPA, and crop insurance folks. I think you will find our fee reasonable and the information you get is far superior to that of other “marketing (un)guru’s”.
Looking for a way to build some price protection should bad news hit? Give me a call at 320-761-0406 or email [email protected].
Thanks for reading.