GPOs and Other Tools Can Protect Your Returns, Even in a Volatile Market

As is often the case this time of year, we’re in a weather market for wheat. It seems every morning there’s a new announcement somewhere in the world that causes markets to move.

That’s often the case in the spring when seeding is happening across North America. There’s a lot of energy in the market. News makes it sound like it’s too hot, too cold, too wet, or too dry. We’re in a weather market now.

For instance, there was an announcement in April that Kansas was going to get more rain than expected. The price for wheat dropped 30 cents a bushel that morning. The next day the forecast called for lower rain totals and wheat markets went back up.

Strong Fundaments for Wheat Worldwide

The fundamentals for wheat are good. The world has ample stock of market-ready wheat. Overall, global crop intentions for planting wheat are strong. There should be a lot of wheat going in the ground.

Take Advantage of Weather Markets

The fact that supply looks good means that you should consider taking advantage of these spring weather markets. Now is a good time to lock in seasonally high prices.

GPOs Help Lock-in Profit

You can take some of the emotion and fear out of trading your fall crop of wheat by setting up Grain Pricing Options (GPOs) through your P&H location. GPOs trigger automatically when the market reaches the price you’ve set. Learn more about taking advantage of GPOs with P&H.

Use the P&H Direct App

Another good tool is the P&H Direct app for your phone. It allows you to compare prices, see what the markets are doing in real time, check futures at a glance, and see contract details. Markets can move a lot, quickly, at this time of year. It’s handy having all the market information in one place for a quick check from the cab.

CP Plus

Finally, don’t forget our CP Plus Program. It is perfect for managing the risk of low protein or other degrading factors. You can sign up anytime before or after seeding. It has flexible grading parameters.

Every year, P&H has 1 million metric tonnes of internal wheat demand through our milling division. Our mills give us a good opportunity to blend different qualities of wheat. We also have markets in South America that use lower protein red wheat for flat bread. If you tend grow low-protein wheat, you can sell it under the CP Plus Program.

Take the fear out of wheat weather markets and take advantage of P&H’s tools and expertise.

Work with your Customer Service Rep or Sales Consultant. They are a good resource to talk through your marketing plan and can help you set up GPOs to market a portion of your crop.

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