Quarterly grain market updates and marketing strategy meetings available in-person or virtually
Come learn about current market trends and principles to help you markets your grains.
Michigan State University Extension has brought back the quarterly Grain Market Meeting updates. Many may remember the Grain Marketing Series hosted by Dennis Stein, MSU Extension farm management educator, and the Milk and Grain Marketing Series hosted by Paul Gross, MSU Extension field crops educator. These ended but we are excited for their return.
Agriculture markets are more volatile than ever. For many farms, the marketing of production can make or break profits for the year. These days, a farm’s future success depends on how well one can understand the markets, plan to minimize market risk, and respond with effective strategies.
Angie Setzer, marketing specialist from Consus ROI, will lead these quarterly updates over the next year. Each session will include global market analyses, price trends for a variety of commodities, and strategies to minimize financial risk in response.
The meetings will be held in various locations throughout mid-Michigan from 10 a.m. – 12 p.m. There will also be a virtual option over Zoom and the recordings will be made available to registrants.
The cost for attending each meeting will be $20, or $60 for the following three. In addition, you will be free to contact Setzer at any time for questions. These meetings will only be open to those sharing the cost and sponsors. The dates and locations for following marketing meetings are as follows:
- Feb. 2, 2023 – Eaton County MSU Extension office, Charlotte, Michigan
- May 2, 2023 – Saginaw Valley Research and Extension Center, Frankenmuth, Michigan
- Aug. 1, 2023 – Gratiot County MSU Extension office, Alma, Michigan
The first session of this series took place on Nov. 3, 2022, and registrants were provided with a rich forecast for markets in the coming quarter and suggestions on how to outride shifts in the geopolitical landscape and a predicted economic downturn.
“We’re getting basis attached to any open HTAs,” Setzer says when describing the strategies she’s using with her clients. The large geopolitical shifts and tensions in Russia, Ukraine and China cause market reactions increases the risk of HTAs. Putting realistic target offers for basis and being willing to sell when offers are accepted is also a suggested strategy.
This time of year is also when Setzer suggests considering what is available for open risk. Take into consideration what your current yields are coming in at and what your overall production may be. “Do this conservatively—whatever you think you’re going to yield, take 10 or 20 bushel an acre off that,” Setzer remarks. The goal is to put a figure on your risk. Determine, what bushels you can store at home, what is needed to ship at harvest, and how many bushels in the bin are unpriced.
With this information and an estimate for operation costs in the next year, you can establish a floor price per bushel. Establishing a floor for the price you would need to sell for the upcoming year will allow you to accept offers with more confidence and sell the “bushel babies” that you have worked so hard to grow. In looking to 2023, target orders after the first of the year are some great opportunities for cash transactions, especially in March when prices can range from $7.05-$7.10.
“If you’re spending money to grow a crop, you need to be marketing that crop,” Setzer emphasizes. With that peace of mind, more a sounder sleep may be in your future.
A quick peak of what recent market trends may mean for you from this past session is provided in this recording: Grain Marketing Meeting, November 2022 Teaser. Please consider joining us for the next session in this series.