Playing MarketMaxx helped Richard Oswald face the facts that his corn marketing strategy “was not a good one.” So the Missouri grower made some changes in his real-life marketing and marketing moves in the game from The Corn And Soybean Digest.
The results were good. He made some strong sales from the corn and soybeans he priced from last year — and won a complete computer system from Syngenta Crop Protection for his second-place finish in the soybean marketing contest.
Oswald, like second-place winner Dale Good, Medina, OH, played MarketMaxx to hopefully enhance his grain marketing skills at a time when highly volatile markets are the rule.
“I learned a lot — I learned more of the principles of marketing,” says Good, a 69-year-old grower who is obviously not afraid to try something new even in his later years of farming. “It's a really good educational tool. Anyone producing grain eventually has to sell it. MarketMaxx helped me do a better job of marketing, and should help others as well.”
Both growers are playing MarketMaxx again this year. MarketMaxx 2007 began in early January and includes close to 6,000 players from across the Corn Belt and just about every other state.
If you have not yet signed up for MarketMaxx, go to www.MarketMaxx.net and get started in your efforts to sell your simulated 100,000 bu. of corn and 50,000 bu. of soybeans.
You could be the winner of one year's use of an AGCO Gleaner R5 or A5 series combine (not to exceed 100 combine separator hours), grand prize in the corn contest. Grand prize for the soybean contest winner is an AGCO RT or DT tractor (not to exceed 250 hours).
The second place prize for each category is a complete computer system plus software from Syngenta Crop Protection. Along with AGCO Gleaner, AGCO Tractors and Syngenta Crop Protection, the other MarketMaxx 2007 sponsor is Cargill Certified SolutionPro.
“I really want to thank the sponsors of MarketMaxx,” stresses Good, who, like many growers, plans to increase his corn acres this year due to higher corn prices.
He used December '06 and March '07 call options to help produce his overall '06 corn contest price of $3.37.37/bu. He used a similar strategy in his real-time marketing. “When I harvested corn, I thought prices were high enough and sold it out of the field,” he says. “I then repurchased call options to cover that.” Prices have since increased, making his call options increase in value.
For Oswald, whose second place soybean price was $6.70.9, MarketMaxx added more excitement to his trading. “I've spent quite a few years monitoring futures prices in my grain marketing,” he says. “Paper trading is rather boring, but MarketMaxx gave me a way to paper trade that was a little more interesting.”
He says MarketMaxx showed him that “selling options during times of high volatility is difficult to do, but that is exactly the time to do it, when premiums are their highest.
“Likewise, buying options is best when volatility is low. No one wants to buy high and sell low. The same is true here. MarketMaxx allowed me to implement a marketing strategy that was free of risk, but one that promised reward if correct.”
Go to www.MarketMaxx.net today and get started in the corn and soybean marketing contests. You've got nothing to lose.