|
Post by wctyilfarmer on Mar 5, 2012 8:28:21 GMT -5
new crop wheat for july is 6.71 with -15 cents on basis. is that a good place to sell some?
|
|
|
Post by wheatfarmer on Mar 5, 2012 10:10:18 GMT -5
It is if you can lock in a profit, otherwise no, not good. Here I can lock in new crop at 6.68 cash. Sure would like to see the basis relax though. Basis is -0.60. If basis would change to equal old crop I could pick up 0.30.
|
|
|
Post by wctyilfarmer on Mar 5, 2012 11:05:38 GMT -5
profit would be dependent on bushels which could be anywhere between 40- 80 bu/acre. 40 is a safe bet the way it looks so far our record is 76. until it is in the wagon its not for sure.
talking about soft red wheat here in so il
|
|
|
Post by wheatfarmer on Mar 5, 2012 11:19:53 GMT -5
Take historical average and expenses, add in acceptable profit and come up with a number. That is what I would shoot for in locking in price. You have from now until around June 1 to do something. Wheat prices tend to start dropping in late April. Anyway, that is how I figure whether to lock in any price or not. You have a better handle on how your crop looks than I do.
Heck, three years ago I locked in 5.25 thinking it was good and wound up selling the rest at harvest for 7.32, some years all the right moves are wrong.
|
|