Grain marketing is how a farm decides when, where and how to price its crop. It includes more than choosing a day to sell. A marketing plan connects the market price to local cash bids, farm costs, storage, delivery options and the farm’s cash-flow needs.
There is no single best selling date for every farm or every bushel. A plan helps producers make a series of decisions through the season instead of relying on one market prediction.
Know the three prices involved
Farmers often follow a futures quote, but the number a farm receives is its local cash price. In broad terms, the local cash price reflects a futures price plus or minus basis. Basis is the difference between the cash bid at a particular location and the relevant futures contract. It can change with local grain supply, buyer demand, transportation, storage capacity, delivery timing and grain quality.
That means two things can happen at once: futures prices may rise while a local bid improves less, or futures may be steady while basis strengthens. For a more complete explanation, see the University of Wisconsin–Madison Extension guide to grain basis and our article on how to think about corn basis.
Start with the farm’s numbers
Before setting sale goals, estimate production costs, expected yield, break-even price, cash obligations and the bushels likely to be available. These numbers help clarify what the operation needs from its crop and how much price risk it can carry. A price that looks attractive on a screen may not work after basis, hauling, drying, storage, shrink, interest and other costs are included.
Compare selling now with storing
Storage can provide flexibility, but it is not free and it does not guarantee a higher price. Compare the value of a current bid with the cost of waiting. Include handling and shrink, interest on the value of stored grain, quality risk, storage costs, and the possibility that futures or basis move against you. Also consider whether the farm needs the cash now.
Local basis history can help explain how bids have behaved at a delivery point, but seasonal patterns are not promises. A local buyer’s current bid and delivery terms are still essential. USDA’s Agricultural Marketing Service publishes grain market reports for covered areas; check the report’s location, delivery period and reporting date before comparing bids. Find USDA grain market information.
For practical comparisons, use our store-or-sell corn worksheet and cash grain bid comparison guide.
Build a plan you can follow
- Set a realistic production estimate and identify the bushels already priced.
- Write down the farm’s cash-flow needs and target price ranges.
- Compare futures, local basis and cash bids for the delivery periods you can use.
- Decide in advance how much grain to price at each step, based on your own plan and risk tolerance.
- Review the plan when production, costs, cash needs or market conditions materially change.
A plan can use target ranges, sale increments and review dates, but the details should fit the farm. Futures and options involve substantial risk and may not be appropriate for every operation. Discuss specific strategies with an adviser who understands your operation and financial circumstances.
Common grain marketing questions
When should I sell my corn?
No calendar date reliably identifies the best sale. Compare the cash bid, basis, delivery terms, production outlook, storage costs and your cash needs. A written plan can help you avoid making the whole decision based on one volatile market day. Read our corn selling checklist for a step-by-step framework.
Is it better to store grain or sell at harvest?
It depends on the local cash bid, storage and financing costs, expected basis, available delivery windows, grain condition and cash-flow needs. Run the comparison using the farm’s numbers; storage alone does not make the return better.
What tools can help me follow grain markets?
The free MMM Market Center brings 10-minute delayed commodity quotes, charts, news, reports and weather into one desktop and mobile workspace. It is free for one year, with no credit card required. It supports market monitoring; it does not replace a local buyer’s bid or an individualized marketing plan.
Make the decision with a process
Good grain marketing is not about predicting every high and low. It is a repeatable process for comparing the opportunities available with the needs and risks of the operation. Midwest Market Management works with producers on grain marketing and risk management. See the services and ways the team can help.
This article is for general education and is not individualized financial, investment or trading advice. Futures and options can result in substantial losses.