Objectives may be based on technical market factors such as resistance levels or price retracements. Price goals may be based on prices that offer production profits or storage returns. Using market signals such as basis improvement is often a good method for targeting cash sales. Whatever market factors or signals you use, having market objectives and selling when they are met is a key to successful marketing. Sometimes road or weather conditions prevent loading grain or making sales from on-farm storage.
Many farmers carry inventory over into the next year.
Selling large amounts of two years' production in one year can distort taxable income. In addition, the extra government program payment and any collected LDPs may have already inflated current year cash income. In these cases, additional sales could create significant tax liabilities. While delaying sales might be a good tax management decision, it might not be a good marketing decision to pass up pricing opportunities. Some of the best soybean pricing opportunities for both the 1997 and 1998 crops occurred in late November and December.