Ever had a contract that has slipped through your paper work trail, or a contract that a buyer says doesn’t exist or gone to outload a silo and realised the grain is a different grade or quality to that you remembered? Portfolio management is a crucial part of grain marketing. Ensuring that your grain position is accurate and regularly monitored ensures that these errors and discrepancies do not occur in your business. Portfolio management also encourages you to regularly re-evaluate whether your current position suits your marketing plan at different times of the growing season and acts as an excellent quick and easy summary of what assets you have left to sell and what cashflow it would generate. On top of this, automated monthly trade reports are delivered directly to your e-mail, helping remind you of your current trade activity.
But what is a good price for you? How can we take the emotion out of price movements and determine whether a price is good for your business? We calculate target prices that are tailored to your unique situation. Using your business information (eg. input costs, overheads, asset value, level of debt) the we calculates a price for each commodity that gives a good return for your business. This looks at performance, profitability and liquidity and aims to give a desired return on asset. You can use these numbers as a guide to indicate what price you should be selling your grain at.
Lachstock Consulting produce a daily market wrap which can be accessed on the home page and this provides a snapshot of what occurred on the overnight markets.
We also produce a fortnightly newsletter that is available upon subscription.
To view these reports, request a free trial.
Two daily messages are available, including a snapshot of what occurred on the overnight futures market as well as prices of commodities for your particular port zone.