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Merchandiser says grain marketing strategies shouldn’t be one-size-fits-all this winter

A grain merchandiser says farmers shouldn’t be locked into a single marketing approach to marketing grain this winter.

Mathew Burkey with Nebraska-based Ag Valley Co-Op says if they stored crops in bags this fall, they need to be more aggressive. “Start looking at some basis and locking basis in because I think basis for January, February and March will get wider at some point when all of this grain tries to hit the market.”

He says waiting too long to sell the grain could create some risk. “I would start getting a home found for it if you want to get it out of there before the end of March because it’s going to feel like harvest all over again. The end users are going to get flooded, then long lines and waits. The good thing, though, I think the elevators will be able to move it fast.”

However, Burkey tells Brownfield, for farmers who have bins, “I think patience is the key. I think you’re going to have tremendous opportunity for basis improvement in April and May then in June and July. If you look at the carry in the market, it’s telling you to carry the grain.”

He says farmers could use the “hedge-to-arrive” strategy, which allows them to lock in future contracts, in an effort to capture potential price increases.