Is your harvest marketing plan ready to go? Whether making forward or physical sales effective grain marketing requires a plan. Regardless of what point you hit in the marketing timeline (forward or post-harvest), effective marketing is about taking a whole of business approach and identifying where the best value is being shown, rather than focusing on one commodity.
Preparation is the key – to ensure that you can take advantage of value opportunities as they arise.
- Wheat: solid global supply (significantly outstripping demand)
- Barley: feed values under pressure from increased corn
- Canola: showing mid-decile range value, but harvest pressure could exert downside pressure on prices.
- In a global context there is a lack of high-protein wheat (APW1-H1) and malt-barley
- Canola showing much better value compared to Barley & Wheat
- DEU market chasing CAG for container trade into Asia.
- $AUD expected to stay below 0.74US$
Update your production data including break-even points, production costs (by commodity and by variety), yield estimates and cost to farm gate
Update your sales data; including Percentage sold / for sale, average price sold to date, average price if all sold to date and effect of remaining production variation
Map out your harvest cash-flow requirements
Determine YOUR profitable price for each commodity that you are selling
Identify the commodities offering the best relative value and decide what to sell first.
Consider your storage options e.g.on-farm Vs bulk handling system – relative to selling DEU or export
Set up target prices and indicative offers with your broker
Ensure you have access to all marketing tools on your mobile devices including: daily market information, daily price alerts/ price movement alerts; Clear Grain Exchange account and loadnet account access
Make sure that all essential trading data is up to date e.g. ABN, NGR, bank account numbers, ISCC declarations etc.
Understand your contracts, premiums and how best to manage allocation relative to achieving your profitable prices.
So there you go! Aim to have a strategy based on your goals, your prices and tailored to your situation. But do allow for contingency.
This creates the foundation of a solid marketing strategy that will give you confidence going into this seasons selling period.