Grain Journal - July/August 2008 - (Page 96) Corn/Soybean Merchandising KEYS TO A SUCCESSFUL MERCHANDISING PROGRAM The 2007-08 grain marlender to supply needed CORN/SOYBEAN keting year held significant monies to maintain ownerMERCHANDISING merchandising challenges for ship, until basis levels apJohn Beurskens the country elevator industry. preciated regardless of fuThe same challenges likely tures price movements. will be prevalent in the upDealing with margin. coming marketing year, as Until the market broke in well. The three key compoearly July, hedgers and lendnents to managing a successers were meeting and disful merchandising program cussing margin needs almost are time, space, and money. daily. In addition, many All three components are faced logistical challenges of interrelated. However, the needing to liquidate ownerbiggest hurdle this past year ship in a timely fashion prior was managing money – that to harvest. Thus, when time, is, having adequate working capital space, or money challenges occur withand financial ratios to encourage your out alternatives, a solid merchandising plan can be seriously compromised. In order to avoid the same pitfalls this marketing year, you need to focus on having the three components of a solid merchandising program worked out for the entire year, with contingencies in place. In the case of money, you must adhere to your lenders’ needs but also seek alternatives. There are creative ways to attain added financing. A merchandising plan allowing for the optimal management of time, space, and money should result in a profitable hedging program. John Beurskens is a merchandising consultant for Advance Trading Inc., Bloomington, IL; 309-663-9021. Response No. 961 Response No. 962 96 GJ J/A http://www.zerospeedswitch.com http://www.grainbeltsupply.com http://www.zerospeedswitch.com http://www.maxigard.com http://www.grainbeltsupply.com
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