Basis Behavior
Marketing should be one of the top priorities for your operation. Being able to profitably market your crop year after year is the key to a sustainable operation. As a Pinnacle Marketing member, you have a team of people working for you.
- Our MID-WESTERN RAIL TEAM trades rail basis for single car and full train homes. This insight allows us to establish what the true market value is for truck bushels in the southeast.
- CROP INSURANCE TEAM can help answer all questions related to premiums and insurance levels and how to integrate marketing to protect your bottom line.
- Local market information from our other ADVISORS in the southeast (VA, NC, SC, GA, AL, FL) shed light on relative truck market homes in our industry. Who is buying trucks for what delivery period at what values, end users shopping for clock bushels, who missed a train and needs supplemental trucks, etc.
Knowing how AND when to use different tools in the marketing “toolbox” to capitalize on opportunities is what we accomplish through our PINNACLE PROGRAM. When to hedge as opposed to a flat cash contract, when to use a basis only contract, how to trade spreads and roll futures – these are just to name a few of the most critical marketing options.
The example below shows how being positioned to capitalize on basis movement alone this year would have been a huge play in using a different marketing tool.
