Hello Kansas Wheat.
Earlier in the week, maybe Tuesday, in my daily (?) grain wire, I wrote I did not like the look of the corn chart, and I really did not like the wheat chart. And as things are a little weaker now, I like them even less. So, in fairly clear language…if you have not sold anything recently, do so right now.
Sell some old-crop corn, and sell some old-crop wheat, And if you have some, sell some old-crop beans. AND sell some new-crop wheat.
I think you could build a decent case for selling all your old-crop wheat, corn and beans…
Sell it. Just close your eyes, pick up the phone, and call the elevator, and tell him “you know that wheat you have in-store for me, well, sell it”. Or “uh, you know that corn I have in my bin, what’s it worth, because I’m bringing it in”. Or even “uh, you know those 10 bags of beans I have in my lower lot? Sell ’em for me”. If you don’t want to sell all of it, sell some.
And after you’ve done that, and this is very important, ask “what is the price of wheat for about next Thanksgiving?” and then say” ok, I will sell you 5000 bushels”.
I personally don’t see how the basis could be much worse on next year’s wheat, so maybe have him just lock in the futures for you.
This is KC Dec’17:
You’ll probably lock in futures around $4.90. I think the $5.00 train has left the station.
Don’t sell the wad. Just sell a little, maybe 10% or so.
BUT GET STARTED. GET SOME ON THE BOOKS. And hope it’s your worst sale..
Source: Kansas Association of Wheat Growers