As the market price changes over the season, nobody can predict when the profitable time to sell will be. But you now have a new tool that allows you to take better advantage and change the tide.
CropsProfit works by combining live market prices with a familiar feeling mobile platform that hosts and visualises your farm’s key information for each of your crop marketing plans.
During every crop’s marketing season, there is a profitable time; the problem is that nobody really knows when it will be. CropsProfit does not try to predict the SAFEX maize price or any of the crop prices for that matter.
You choose the amount of money you would like to make when you sell your crop and as the market price changes during the season and you reach your profit goals, the algorithm indicates that you should sell some. The amount you sell will increase as the amount of money you make increases. Experts call this profit margin hedging, which in the end, helps protect the money you make.
Position sizing is another word for the size of the transactions you are doing.
The larger your transactions (larger position sizing) the more difficult it becomes to make decisions because of its emotional impact and the risk of putting “all your eggs in one basket”.
It’s always important to choose a position size for your transactions that you are comfortable with. CropsProfit helps you take the emotion and ‘gambling’ out of the decision and instead follows a proven methodology. In essence, the method, or workings within the platform, is based on the idea that: “If you’re meeting your profit goal today – why not sell some?”
For more detail on how it works, download the eBook and unlock the app:
Try to stretch your marketing window when it comes to hedging the SAFEX maize price The moment you have the intention to produce a specific season’s crop, that season is starting to have a price risk. From a crop producer’s point of view, price risk is the possibility that prices will go down.
Therefore a new season’s crop marketing plan can even start when the current season is still growing.
When to start a season’s crop marketing plan is a personal choice, but typically it is as soon as the previous season’s harvest is completed.
Your marketing window can be stretched even wider by keeping some of a season’s harvest in storage after harvesting. If your profit goals were not reached, CropsProfit will now also keep your storage cost in mind when calculating your net profit.
Because everything is tracked and visual, CropsProfit will help you pick up on patterns a lot faster the more you use the platform!
Marketing tools are the different instruments you can use to sell your harvest.
With your Uncertain Harvest, you are not sure if you can deliver on a contract with a buyer. This is the uncertain time period before and just after seeding and your deliverable harvest is usually 0%. A typical marketing tool here is a put-option.
With your Certain Harvest, you are sure you can deliver on a contract to a buyer. Your deliverable harvest percentage increases as your crop matures, and it reaches 100% after your harvest is completed. A typical marketing tool here is a forward cash contract. There are a few more Certain Harvest marketing tools to choose from while choosing one default marketing tool at a time.
With the right tools at your fingertips, you will be able to take advantage of more opportunities the market has to offer. You’ll become more and more empowered to not only keep your finger on the pulse of the SAFEX maize price but also take more profitable steps forward on a continuous basis and into the long term!
CropsProfit allows you to use dynamic season types like Actual and Simulation to compare your crop marketing plans. Essentially these features allow you to compare your actual transaction’s performance to the simulation transaction’s performance when obediently listening to the recommendations CropsProfit’s simulation function makes.
With CropsProfit, the principles discussed are built into your crop marketing plans, making the odds much better for the SAFEX maize price to end up on your side.
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