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Grain Market Advisory Services Often Beat Average Price Benchmarks
Grain market advisory services consistently beat the price farmers received for their grain from 1995-2000 in an Illinois study.
The Ag Market Advisory Service (AgMAS) project at the University of Illinois conducted the study. The project has evaluated the performance of about 25 advisory services each year since 1994. Economists
subscribe to the advisory service, read their recommendations each day and then record the recommendations.
The results of individual services and the group of services as a whole are then compared with three different benchmarks. Two of the benchmarks involve an average price over a specified time period. The
third is the USDA average price received by Illinois farmers.
While the study used Illinois prices, the relationship between benchmarks and advisory service performance should still be relevant for other grain farmers, says Paul Carr, University of Minnesota
Extension Service.
As a group, the advisory services consistently beat the farmer’s price received benchmark for both corn (73% of the time) and soybeans (74% of the time) from 1995-2000. The advisory services beat the
average price benchmarks in soybeans 60-70% of the time, but did not consistently beat them in corn (51-59% of the time).
The average advisory service corn price in the crop year 2000 was $2.12, which was 17 cents more than the farmer benchmark and 3-11 cents better than the average price benchmark. The average advisory
service soybean price was $5.44, which was 15 cents more than the farmer benchmark and 2-6 cents more than the average price benchmark.
Advisory service prices ranged from $1.79 to $2.78 for corn and $5 to $6.83 for soybeans. The prices are cash prices for central Illinois and include government loan deficiency payments.
A website with more information on the AgMAS study is at http://web.aces.uiuc.edu/farm.doc/agmas/index.html .
If you’re not comfortable making actual hedging and trading decisions yourself, then consider hiring a professional marketing advisory service.
Following is a listing of commercial market advisors that many producers in the Northern Plains call on for market advice and decision making.
It is not a comprehensive list; indeed, it does not include the many experts at country elevators in the region who also assist their farm customers with marketing. Nevertheless, this list does provide additional professional contacts for you to consider in making marketing decisions.
Ag & Investment Services, Inc.
Contact: Sue Martin
Address: Box 202, Webster City, Iowa 50595
Phone: 800-527-0051
Fax: 515-832-2507
E-mail: ag-indus@wmtel.net
Website: www.commoditymarketnews.com/AM3/suemartinmain.htm
Services: Futures trading and hedging
Marketing Tip: Become more worldly and have a marketing window set up at the beginning of the year.
Agri-Mark, Inc.
Contacts: Mike Krueger, Mark Jens
Address: Box 716, West Fargo ND 58078
Phone: 701-282-8123 or 800-373-8123
Fax: 701-282-5318
E-mail: agrimark@agri-mark.com
Website: www.agri-mark.com
Services: Daily commentary on DTN/FarmDayta or
E-mail. Full service commodity broker.
Marketing Tip: He who does nothing loses. You must be willing to spend money to market your production.
ADM Investor Services
Contacts: Bob Lebacken, Wayne Olson, and Carl Meldahl
Address: 1197 S Columbia Rd Suite D, Grand Forks, ND 58208
Phone: 701-775-1008 or 800-800-4618
Fax: 701-746-0276
E-mail: BQGF@gfherald.infi.net or lebacken@hotmail1.com
Services: An informative hedge newsletter and marketing service.
Marketing Tip: Learn how to use the futures and options market to protect against unfavorable price moves.
Brock Associates
Contact: Richard Brock
Address: 2050 W Good Hope Road, Milwaukee, WI 53209
Phone: 800-558-3431 or 414-351-5500
Fax: 414-351-3140
E-mail: breport@brockreport.com
Website: www.brockreport.com
Services: Consulting, Total marketing Program, brokerage
services, newsletter
Capital Trading Associates
Contact: Clark Fredericksen
Address: 360 Pierce Avenue, Suite 204 North Mankato, MN 56003 Phone: 507-345-3925 or 800-535-8012
Fax: 507-345-3672
Email: clark@capitaltrader.com
Website: www.capitaltrader.com
Services: full service commodity brokerage firm
Marketing Tip: Be willing to change with current market information. Look at all the growing regions in the U.S. and abroad.
CountryHedging
Contacts:
Keith Banta, Brian Peiler, Tom Potter, Rick Warner, Tim Bolan, St. Paul;
Marcia Eidahl, Brad Erickson, Aberdeen, SD;
Pat Murphy, Mark Weineke, Fairmont, MN;
Jim Wendland, Northfield, MN
Address: Country Hedging Inc,
PO Box 64089,
Saint Paul, MN 55164-0089
Phone:
St. Paul 1-800-243-3432;
Aberdeen 1-800-388-8788;
Fairmont 1-800-992-5528;
Northfield 1-800-433-4385
Website: www.countryhedging.com
E-mail: info@countryhedging.com
Services: “Champ” marketing plan, market decision making and advice, monthly newsletter, market listserv. Marketeer Software.
Marketing Tip: Create and use your marketing plan.
Commodity Resource Group
Contact: George Kleinman
Address: PO Box 8700, Incline Village, NV 89452-8700
Phone: 800-233-4445
Fax: 775-833-1400
E-mail: info@commodity.com
Website: www.commodity.com
Services: Futures and options advisory, brokerage, hedging and
trading services.
Marketing Tip: Never be bull headed! If the market will not go your way, then go its way!
Doane Agricultural Services
Contact: Alan Dever
Address: 11701 Borman Drive, #300, St. Louis, MO 63146-4193
Phone: 314 -569 -2700
Fax: 314 -569 -1083
E-mail: dar@doane.com
Website: www.doane.com
Services: Doane Ag Report (weekly) which comes with the market advice to subscribers
via Internet (EDoane.com)
Marketing Tip: Remain in tune to the markets especially since producers seem to be more at risk this year.
E-Hedger
Contact: Mark Gold
Address: 141 W Jackson Blvd, Suite 1520A Chicago, IL 60604
Phone: 866-Hedger (866-433-4371)
E-mail: info@ehedger.com
Website: www.ehedger.com
Services: Risk management for farm producers, personal marketing plan, personalized brokerage services
Marketing Tip:
Grain marketing is like deer hunting. When a 12-point buck comes in front of your sight, you take it, even though a 16-point buck may be out there. Pull the trigger and be happy with what you’ve got.
Futech Commodity Services, Inc.
Contacts: Doug Lingen, Sheldon Laib and Gary Houghton
Address: 4357 13th Ave SW, Suite 212, Fargo, ND 58103
Phone: 701-281-1288
Fax: 701-281-2015
E-mail: futech@futechcommodities.com
Website: www.futechcommodities.com
Services: Full service marketing and commodity trading, E-mail trading alert.
Marketing Tip:
Look at your basis levels. If you determine the basis levels are good either pre-harvest or at harvest, lock in your basis levels. If you have to give up ownership of your grain to do this, then look to re-own grain with options or futures, either at the time you did it or at the harvest lows.
Goldenberg, Helmeyer & Co.
Contact: Helen Pound
Address: 450 Grain Exchange, Minneapolis, MN 55415
Phone: 612-332-6473
Fax: 612-332-6767
E-mail: helenpound@aol.com
Website: www.gho.com
Services: Futures brokerage
Marketing Tip:
The weaker dollar is having a strong impact on the market, providing some support. Farmers should be sure and follow what the dollar is doing before they market their crop.
Investors Commodity Services, Inc.
Contact: Chuck Persson
Address: Box 3043 , Mankato MN 56001
Phone: 1-800-369-3737
Fax: 1-507-625-3735
E-mail: invescom@frontiernet.net
Website: www.investorsics.com
Services: Success strategy newsletter.
Personal marketing support. MarketWatch Program. MarketWatchTarget 260 Plus Program.
Marketing Tip:
Identify and use market tools that allow you low risk and low stress. Good marketing habits and tools will give you the edge.
Northern Crops Marketing
Contact: Brad Paulson
Address: 109 9th Ave E, Suite C Langdon, ND 58249
Phone: 888-835-3999 or 701-256-3999
Fax: 701-256-3998
E-mail: ncmi@utma.com
Services: Full Service commodity brokerage.Catering to mostly producers and end users of agricultural commodities
Marketing Tip: Have a marketing plan and work it.
North Star Commodities
Contact: Alan Kluis
Address: 1000 Piper Jaffray Plaza, 444 Cedar St Minneapolis, MN 55101
Phone #: 651-255-7550 or 800-345-7692
Fax #: 651-225-7559
E-mail: aginvestor@agmotion.com
Website: www.north-star-commodity.com
Services: Individualized consulting, market education, brokerage
Marketing Tip:
Formulate a written marketing plan and stick to it. Spread your sales out over time. Do not try to hit the “top” with one or two sales.
Pro Farmer
Address: PO Box 36, Suite 300 Cedar Falls, Iowa 50613
Phone : 800-772-0023
E-mail: Editors@profarmer.com
Website: www.agweb.com
Services: Detailed advice and charts on corn, soybeans and wheat.
Delivers timely and accurately analysis of market sensitive news to its members.
Marketing Tip: Having a successful marketing strategy can make a difference between profit and loss.
Progressive Ag Marketing
Contacts: Ray Grabanski, Randy Martinson
Address: 415 38th St SE Suite C, Fargo ND 58103
Phone: 701-277-9210 or 800-450-1404
Fax: 701-227-9248
E-mail: randy@progressiveag.com
Website: www.progressiveag.com
Services:
Full service hedge marketing company that offers futures and options trading on all exchanges as well as advise on various marketing strategies throughout the year. Farm Bill and crop insurance analysis.
Marketing Tip:
1) Lock in basis when strong (usually Oct/Nov). Or watch major terminalslocations for quick improvements in scales (usually means they need grain to fill trains).
2) Watch quality
discounts and market your grain when discounts decline (usually Nov).
3) If LDP becomes available, take on futures first major up day.
4) Try to avoid selling at harvest when discounts and basis are at
seasonal lows.
Smith-Ag
Contact: Roy Smith
Address: 12200 24th St. Plattsmouth, NE 68048-7802
Phone #: 402-298-8570
Fax #: 402-298-7465
E-mail: soyroy@altel.net
Website: www.soyroy.com
Services: Newsletter, speaking, writing, marketing training
Marketing Tip: Learn to use marketing loan along with other marketing tools.
Spectrum Commodities
Contact: Louise Gartner
Address: 750 6th St SW, Great Falls, MT 59404
Phone: 800-888-9843 or 406-727-9722
Fax: 406-727-9536
E-mail: info@spectrumcommodities.com
Website: www.spectrumcommodities.com
Services: Up-to-the-moment marketing
info, provide risk management services for hedgers and premier brokerage services to speculation
Marketing Tip:
1) For those that have sold spring or winter wheat, look for the market to stabilize.
Maybe consolidate for a period of time and buy call options to replace any sales that have been made previous to this time.
2) If you have not sold your grain and can hold on to your wheat, look for some pricing opportunities this spring as the new crop comes out of dormancy.
Stewart-Peterson Group
Contact: Brian Doherty
Address: 137 South Main Street, West Bend, WI 53095
Phone: 800-334-9779
Fax: 262-334-6225
E-mail: info@stewart-peterson.com
Website: www.stewart-peterson.com
Services: Advisory publication, brokerage
services, marketing, AgEdNet.com
Marketing Tip:
Without a carry in the wheat market right now, we are encouraging producers to consider pricing out their cash grain,then reowning it with a deferred contract. With re-ownership, you can still capture an upside price over the market place, and you are eliminating your price risk in the cash market. This is beneficial because there is no carry in the market.
Strategic Marketing, Inc.
Contact: Jerry Gulke
Address: 5717 Fitzgerald Rd, Rockford IL 61102
Phone: 815-962-6610
Fax: 815-962-6672
E-mail: Smsjgulke@aol.com
Services: “Daily” fax/e-mail marketing strategies and advice
Marketing Tip:
To maintain a focus on supply and demand and fully understand what Freedom to Farm can do “for you” and what it can “do against you.”
Utterback Marketing Services, Inc.
Contacts: Robert L. Utterback (Farm Journal Economist) or Chuck Shelby
Address: 112 S Wabash St, PO Box 184
New Richmond, IN 47967-0184
Phone : 800-832-1488 or 765-339-7704
Fax : 765-339-7798
E-mail: utterbac@tctc.com
Website: www.utterbackmarketing.com
Services: Daily market comments, strategies & recommendations via fax and at our web site.Full-service
brokerage…Consulting. Newsletter via mail, fax or at our web site. LDP and Basis, Futures and Hedging recommendations
Marketing Tip:
Risk management is far more important than picking the tops and bottoms of the market. Be positioned so you have protection in case the market turns against you.
Wild Oats Grain Market Advisory
Contact: John Duvenaud,
Address: 846 - 167 Lombard Avenue, Winnipeg MB R3B 0V3
Phone: 1-800-567-5671 or 204-942-1459
Fax: 204-942-7652
E-mail: wildoats@canadagrains.com
Website: www.canadagrain.com/wildoats
Services: Wild
Oats provides news, analysis, marketing strategies and local prices for grains, oilseeds and special crops.
Market advisory services, compiled by Marlene Dufault, Prairie Ag Communications, can also be found online at www.smallgrains.org .
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