Are there any pricing strategies for stored grain?
Negative economic factors are overshadowing grain supply/demand fundamentals. Market storage signals are not encouraging for grain storage and prices are in a downtrend. These and other factors tend to suggest that storing grain is based on the hope that prices will eventually rebound. Price targets and selling decisions may need to be planned according to when cash is needed and on the financial ability to bear risk. If cash is expected to be needed sooner rather than later, then using technical price signals to set sales targets might be helpful. For both corn and soybean prices, the upper ends of the current trading ranges produce cash prices that are near the lower ends of USDA’s projected price ranges. Selling on price rallies to these price levels would help avoid the very lowest prices and capture prices somewhat near expected average prices. If futures prices break out of the lower side of the current trading ranges, it would be a negative price signal that would indicate the p
