University of Minnesota Extension

Winning the Game   Tool Time

Tool Time for Post-harvest Marketers

What pricing tools are available to grain marketers after harvest? This program will use two different post-harvest marketing plans to illustrate the pros and cons of pricing tools. A corn plan illustrates tools used to sell the carry: forward contracts, selling futures contracts, hedge-to-arrive contracts, and buying put options. A soybean plan illustrates four more tools: selling at harvest, holding unpriced grain, selling at harvest and re-owning with call options, and price windows. Your customers are invited to put these tools to the test in a fast-paced and realistic marketing game. The simulation game helps us understand the tools and it reinforces valuable lessons learned in “Winning the Game: Launch and Land your Post-harvest Marketing Plan.”

 

Featured Celebrity Producer

Earl Eitheror

He makes a tactical marketing choice based on carrying charges at harvest.