One thing that we all know for sure is that we are now officially one day closer to the next big “opportunity”. Some call it a “big rally" and some call it a “headache”! We know that while a dramatic ...
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How much unrealized profit or loss do you want to pick up on your financial statements? The answer to this question determines the method grain companies use to value inventory and forward contract ...
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Producing financial statements monthly is the best way to monitor the progress of your business. Monthly statements that include a Balance Sheet and Income Statement give you a good sense of the ...
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The end of summer brings thoughts of planning and profitability. Grain companies that buy grain from producers and sell it immediately to users of grain, now see additional grain margins available ...
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When you see what appear to be good, well-established, long-standing companies suddenly fall apart it makes you wonder:
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The first step is to eliminate break even from the discussion, no grain company is in business to break-even. Decide on a profit target and this analysis will help to shape the necessary decisions to ...
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This year many of the ghosts of grain merchandising past have revisited us; low cash prices, higher than normal harvest basis levels, uncertainty of spread needs due to delayed ownership and ...
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One of the greatest weapons in a grain merchandiser's arsenal can be making deferred basis sales. It can be a great way to reduce basis risk, reduce margin call/cash flow risk, and set the stage for ...
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Despite just wrapping up an intense and at times nauseating, campaign season, I am not referring to politics here. Another way of phrasing this question would be do you merchandise your bushels, or ...
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Simply stated, the shared burden of both the basis and futures is to move grain. When these signals are interpreted correctly, this task is accomplished. The point of difference being who these ...
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