If I were betting on the most frequently asked question or commonly misunderstood item on a grain buyer’s bid sheet, it would be BASIS. It seems just hearing the word causes people to shut down…but not today! Today’s the day we tackle basis! Before I answer four commonly asked questions, I’ve defined a few key…
Category: Grain Marketing 101
Secrets to Reading a Bid Sheet Element #3: Change
We’re now on element #3 in our “Secrets to Reading a Bid Sheet” series! If you missed the other posts in the series–take a couple minutes to click the links & catch up! 1(summar), 2(delivery dates), 3a(futures price), 3b(futures month) Today, we tackle change. Change might seem like a simple concept and, mathematically, it is….
Secrets to Reading a Bid Sheet Element #2: Futures Month (Part 2)
One thing you may have noticed about the futures price when we discussed it last week, (find the article here if you missed it!) is that with the futures price, comes a futures MONTH. The futures prices associated with those months are also different prices…but why? To help grasp difficult concepts, I find it helpful…
Secrets to Reading a Bid Sheet Element #2: Futures Price (Part 1)
What impact does the Futures price have on the Cash Price I will receive? Do you invest in the stock market? If you do, a good starting point to understanding the futures price of a commodity is to relate it to the price of a stock. Before you decide to invest in a share of…
Secrets to Reading a Bid Sheet Element #1: Delivery Dates
In my post last week, we started a series on one of the most fundamental pieces of grain marketing–understanding a bid sheet. Today, we tackle the first element: the delivery date range. Anyone else love happy hour? Stick with me here…I promise I’m still on topic. I personally love happy hour. It’s second to my…
Why didn’t you Sell Grain Today?
If you’re still learning the marketing side of the farm operation, have you ever asked your farmer this question: “Why didn’t you sell grain today?” It doesn’t matter whether the market price was up or down or whether it’s corn, beans, cattle or hogs. Just ask him, “Why didn’t you sell today?” If the market…
Secrets to Reading a Bid Sheet
Let’s talk bid sheets. First off, what are bid sheets in real English, please? A bid sheet is a just a fancy name for a list of prices that a grain buyer {elevator, corn or soy processing plant, livestock feeder, etc.} is willing to pay for your grain. Depending on when you can deliver the…