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Executing a disciplined grain marketing plan during early summer weather scares is critical to protecting profitability.

While rapid planting progress erased early-season supply concerns, emerging Corn Belt dryness and geopolitical events could trigger volatile, short-lived upward price moves.

Use this tip sheet to clear out old crop inventory, protect new crop margins, and navigate seasonality.

1. Clean Up Old-Crop Inventory

• Empty commercial storage bushels by July 1

• Holding old crop grain ‘in town’ past July 1 rarely pays off due to accumulating fees and shrinking cash premiums.

• Capture local cash premiums

• Delivering on-farm old crop stocks on basis spikes is critical as bins need emptied ahead of the new crop harvest.

2. Defend New-Crop Risk Amid Tight Margins

• Target incremental sales

• Use firm offers to scale-in sales using % goals to take the guesswork out of marketing. This approach provides discipline and spreads out risk.

• Maintain flexibility via various risk management strategies

• Utilize various contracts and tools to manage price risk. Focus on establishing floor prices and maintaining upside opportunity.

3. Navigate Summer to Harvest Seasonality

• Capitalize on summer price peaks

• Corn and soybeans historically hit seasonal highs between mid-May and late June as supply fears peak. Odds/probabilities point to lower prices by August and September.

• Uncertainty + Volatility = Opportunity

• Summer weather markets are a psychological rollercoaster. Shifting your mindset to think in ‘bets’ –focusing on probabilities rather than trying to predict price–allows you to turn uncertainty and volatility into opportunity while blocking out the noise.