Contact Us Home Grain News Weather Shideler Grain Producer Resources Misc Pricing In An Inverted Market Inverted markets create quite a psychological challenge for farm marketing. An old crop situation causes prices to rise. New crop prices rise too - but not nearly as much. And it's HARD to sell a new crop price, however good it might be when the nearby price is much higher. How can you overcome the mental block of selling at a “discount”? Here are a few ideas to think about. 1. It's not a discount The nearby price is the value of grain delivered today, under today's circumstances. The new crop price is the value of grain delivered months from now when a brand new supply is expected. Of course, things will adjust as the season moves on, but for all practical purposes old crop and new crop are two separate commodities right now and the market clearly reflects that. In fact... 2. New crop prices are high Here are the prices of Dec corn and Nov soybean futures on February 23 for the past 5 years: Old crop concerns are dragging new crop values up with them. That's good news because unlike last year at this time... 3. Profit is on the table The specifics will look different from operation to operation of course (these are USDA average yields and a ~10% increase above USDA average costs), but most if not all operations can show a profit at these prices. Of course, this is only February, right? New crop prices tend to improve from here, don't they? Well, if these prices aren't good enough, the best way to get what you want is to... 4. Use Target Orders The humble Target Order is free, efficient, and by far the best tool for helping people get out of their own way. "I'll keep watching the market" and "call me when it gets there" are just ways to set yourself up to not make a good decision later on. Just like automatic payroll deductions make it easier for people to save money, Target Orders make it easier for people to sell good prices. Give us a call today, let’s put in some Target Orders so you can get some profit locked in for your operation. Shideler Grain (765) 282-6226 Contact Us 2330 E Ashcraft St Eaton, IN 47338 Phone: (765)282-6226 info@shidelergrain.com ©2021 All rights reserved.