A lot of marketing firms subscribe to one or the other in the technicals vs. fundamentals arena. We believe that is a short-sighted way to look at the markets. We look at technical indicators such as the MACD, Stochastics, and RSI to help identify overbought and oversold markets in the relative short-term. Then, we have to take into account the current and potential global environment, supply/demand, fund positions, seasonal, etc to aid in how to react to those short-term technicals, if any action is needed at all. Every piece of information that goes into a recommendation will be provided under the initial guidance for anyone who wants to know the “why?” behind our advice.

Crop Profit takes a very “business minded” approach to marketing grain. Most advisory services base their advice on the lowest common denominator to avoid making a recommendation that might be considered too aggressive for their customer base. We do not do that. Ultimately, you are the final decision maker on whether you take our advice or not. Our recommendations are aimed at maximizing your cash sales profitability, not making sure everyone is comfortable acting on them. We don’t pretend we can have you sell every bushel at the high, but if we can make profitable risk reducing sales & hedges over the course of the marketing year, we’ve achieved our goal as a company.

You’ve all been there before… every headline you hear or read is about the crop at risk due to some weather event. All the “experts” are throwing out big price predictions for $15 corn and $30 beans. Your backyard looks a little rough and everything you see and read says the market is never going down again. What happens next? Outside of 2012, just about every other year things turn around at some point, and everyone kicks themselves for not pricing what they should have. Crop Profit aims to break that cycle. We will stick our neck out for counter-trend sales. We want to be selling when all the the information is as bullish as possible and buying when it looks as bearish as possible. If we sell too early, we are okay averaging in even with multi-year crop sales. Not willing to sell? We want to be hedging profitable sales using the board. It’s all about risk management, and when prices are already over break-even, your risk is that prices fall. If prices keep going higher, sell more and maybe even a piece of the next year’s crop.

Too often big weather or world events create opportunities to reduce risk and book profits for current and future crop years. We aim to take advantage of these opportunities and will recommend multi-year sales and/or hedges. Our goal is not to have you roller-coaster market, making a few good sales at high prices only to be left with “hope” as a strategy when prices cycle lower. Crop Profit wants our customers farming for more than just this crop year. Our guidance and advice is structured as part of a long term marketing strategy to reduce risk, eliminate storage costs, and lock in profits when we have them.