Grain IQ

Many grain producers base their grain marketing decisions on basis or the cash market. So why is it important that farmers understand the futures market?

Darin Fessler, senior hedge advisor at Lakefront Futures and Options, said that understanding the futures market can help producers better manage risk throughout the year.

Guest: Jeff Peterson, Heartland Farm Partners

Throughout season one of Grain IQ, listeners have learned about factors that influence commodity trade, tendencies of different types of grain marketers and strategies for developing a grain marketing plan.

In this episode of Grain IQ, Jeff Peterson, president of Heartland Farm Partners, shares helpful resources for developing a marketing plan.

Guest: Ed Usset, University of Minnesota

While it’s important to understand basis, the Chicago Board of trade, seasonality patterns and more in grain marketing, it’s even more important to be able to think about all of those components collectively to develop a marketing plan.

In the latest episode of Grain IQ, Ed Usset, a grain marketing economist for the Center for Farm Financial Management at the University of Minnesota, explores two main types of grain marketing plans: pre-harvest and post-harvest.

Usset said producers can view his pre and post-harvest grain marketing plans for corn, soybeans and wheat dating back to 2014. The plans are available here.

Every year is different when it comes to grain marketing, but some patterns will hold true.

In this episode of Grain IQ, Heartland Farm Partners President Jeff Peterson sheds light on how the seasonality of grain can impact your marketing plan.

Grain IQ is a production of the Nebraska Rural Radio Association, in cooperation and with support from the Nebraska Soybean Board.

In order to stay profitable, producers have to sell their commodities at or above their breakeven. Seems pretty simple, right?

So who determines what those commodities are worth? How do other people buy and sell futures and options? Who sets the prices of commodities?

That’s where the Chicago Board of Trade comes into play.

In this episode of Grain IQ, author and market analyst Elaine Kub explains the role the Chicago Board of Trade plays in setting the futures price for commodities.

What is basis and why does it play a role in grain marketing?

Basis is the difference between the futures price and the cash price. It’s an indication of whether or not a local buyer wants your grain. The more positive the basis, the more the buyer is willing to pay for your grain. The more negative the basis, the less the buyer is willing to pay for grain.

There are many factors, both seasonal and situational, that affect basis.

Jeff Peterson, president of Heartland Farm Partners and University of Nebraska-Lincoln professor of practice, breaks down basis and how it affects a grain marketing plan.

The U.S. exports a lot of grain. In fact, U.S. exports of grain in all forms reached nearly 101 million metric tons in the 2019/20 marketing year.

So what countries rely on U.S. grain? Where does it go? How does it get there? In this episode of Grain IQ, author and market analyst Elaine Kub explores the developing and major international markets for U.S. corn, soybeans and wheat.

Have you ever wondered how the U.S. uses grain produced by its own farmers? You’d probably be surprised to learn about all of its uses!

Author and market analyst Elaine Kub dives into the domestic uses of U.S. grain, specifically for corn, soybeans and wheat.

Every grain producer has a different personality, different preferences, and different tendencies which impacts the ways in which they think about grain marketing.

On this episode of Grain IQ, we’ll explore two main types of grain marketers: pre-harvest marketers and post-harvest marketers.

Before futures contracts and the Chicago Board of Trade, grain marketing was as simple as a farmer trying to make money.

These days, basis, grain elevators, and other factors have made grain marketing a complicated endeavor.

Gain a greater understanding of the origins of the grain markets in Episode 1 of GrainIQ, featuring Ed Usset, grain marketing economist for the Center for Farm Financial Management at the University of Minnesota, and hosted by Chad Moyer.