September was a BAD month for soybean prices. At the start of September, my pre-harvest sales were too early and too cheap. By the end of the month, my average early sale price and the market were equal. Carrying charges from November to March or May are not large, but the harvest basis for soybeans is (once again) wide and selling a modest carry buys time for a better basis, and I am a basis bull. I delivered 4,000 bushels at harvest. A portion of this (2,500 bushels) was priced earlier with an HTA contract (at $13.49/bushel – my best pre-harvest sale) and the balance (1,500 bushels) was sold at the harvest price. I placed a storage hedge (stored soybeans and sold futures) on 15,000 bushels and I am banking on higher prices by spring on the remaining 5,000 bushels.
And I am still shaking my head over the fact that I have no sales on the books for 2012 soybeans, because I passed on the opportunity to price at $13.99½/bu. on the Nov’12 contract (currently trading about $12.20). It was, you understand, a lousy ½ cent shy of my goal. %#@!
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