Wheat prices are in the tank, and elevator managers report that producers have an above-average percentage of their wheat unsold. To decide when to sell wheat, producers tend to want a definitive price projection. No one can provide a definitive price projection.
An alternative to selling strategies based on price outlook is using mechanical selling strategies that are dependent on time and/or price levels.
If you have a written marketing strategy, it is probably best to continue to follow that strategy. Or, if you have a marketing strategy that is used year after ye
A popular mechanical plan is to sell wheat in increments over time. Step one is to determine the final date at which all wheat will be sold. The second step is to specify how many lots are to be sold. Sell dates are determined by dividing the number of lots, minus one, and selling on the calculated dates.
For example, consider 20,000 bushels of wheat in storage to be sold in four lots (5,000 bushel increments) by January 1. Between now and January 1, 108 days remain. 5,000 bushels of wheat will be sold today, 5,000 on October 14, another 5,000 on November 19, and the final 5,000 on December 31. This strategy calculates to 36 days between sales.ar, continue to use it.
