Corn and Soybean Pricing Strategies Using FAPRI Baselines and Ranges

Emily Scull, Daniels Jaegers, Matthew Green, Melinda Foster, Reece Frizzell, Melvin Brees and Abner Womack

No 309642, 2020 Conference, St. Louis, Missouri from NCR-134/ NCCC-134 Applied Commodity Price Analysis, Forecasting, and Market Risk Management

Abstract: This research model examines the use of FAPRI baselines and ranges to develop marketing strategies for the sale of corn and soybeans. The goal was to create a disciplined and objective approach for selling crop which would ultimately increase prices received over the 2008-2018 10-year period. Three strategies were developed: A Price Objective strategy which makes upside sales, a Trailing Stop strategy which makes downside sales, and a Seasonal Sale strategy which makes structured sales during historically high times. Additional methods for selling were implemented into each strategy including All Time High sales, sales made when there is a Five Percent Drop from the Ten Day High, and End of the Year Trailing Stop sales. Multi-year sales were also considered separately and included the same strategies and methods for selling. Results showed that all strategies out-performed USDA average farm prices received for the period examined. The results of this research could shape future models and increase economic gains for agricultural producers.

Keywords: Crop; Production/Industries (search for similar items in EconPapers)
Pages: 31
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:ags:nccc20:309642

DOI: 10.22004/ag.econ.309642

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