Mastering the Grain Markets: How Profits Are Really Made

by Elaine Kub

Updated content in 2018! (Including e-book friendly charts and tables.) Despite being excited by and interested in the grain markets, many participants crave a better understanding of them. Now there is a book to deliver that understanding in ways that could help you make money trading grain.Elaine Kub uses her talents for rigorous analysis and clear, approachable communication to offer this 360-degree look at all aspects of grain trading. From the seasonal patterns of modern grain production, to grain futures' utility as an investment asset, to the basis trading practices of the grain industry's most successful companies, Mastering The Grain Markets unveils something for everyone.The key to profitable grain trading, Kub argues, is building knowledge about the fundamental practices of the industry. To demonstrate the paramount importance of such intelligence, she uses anecdotes, clear examples, and her own experiences as a futures broker, market analyst, grain merchandiser, and farmer. The result is an immensely readable book that belongs in the hands of every investor, grain trader, farmer, merchant, and consumer who is interested in how profits are really made.

Genres: Nonfiction

301 pages, Paperback

First published June 19, 2012

Reviews

[Julison · Rating 5 out of 5]

The A-Z of Ag Commodities

If you want to read this book to help you day trade in Ag Futures or find some detail on Technical Analysis, better find those information in another book.
This book shows (actually teaches) you about while Ag Market operation. It’s main focus is on the physical side of Ag Market but it also explain (at a introductory to mid-level) about Financial Ag Market, including Futures and Options.
The author really knows what she’s talking about as she dive deep on the whole cycle of Ag Market: planning, preparing soil and equipments, sowing, monitoring/adjust, and harvesting.
This book also shows not only farmer’s view but also the other participants view, like elevators, processors, and even end users.
It is difficult to choose a best part of the book but I think I can pick the month-by-month explanation of what is happening for each of main Ag products: corn, soybeans, and wheat.
I could not recommend this book more. It broadened my view about Ag Market in a way that I never dreamed of.

[Johns · Rating 5 out of 5]

A splendid intro to American grain markets for first-timers. After reading it, I had to have a copy for our personal library so I bought a copy. I refer to it again and again as I increasingly watch grain news from a number of different sources. Get a copy and read this masterful book!

[Lucas Borgman · Rating 5 out of 5]

Elaine does a great job at giving an explanation of the grain markets and marketing devices. Anyone who's interested in learning more about grain marketing would benefit from this book.

[Fernando Rodriguez-Villa · Rating 2 out of 5]

Fine. There were maybe two supremely informative chapters that I wished I had read a while ago (chapter 2 & 6).

[Sergey Dudko · Rating 2 out of 5]

Farmers deliver grain to elevators themselves either by using their own transport or by hiring the transportation services
There are some instances when a farmer will bring his grain directly to a local end user but more commonly he will deliver it to a local grain elevator
The first and one of the most important operation at elevator is the grain grading
Grain elevator’s highest margin opportunity is in the “mix & blend” process. By mixing discounted grain with better grain, the elevator can average out the grading factors and sell the whole bin full of mixed grain to the market – without discounts
The elevator’s ability to unload grain quickly from farmer’s transport is a very important KPC for farmers. At harvest time, farmers will prioritize elevators with shorter unloading time, sometimes even at the expense of price
An elevator is focused on maximizing the number of bushels received and handled due to low per bushel margin
The most common grain supply chain structures
Grain Producer→Elevator→Processor
Grain Producer→Elevator→Terminal Elevator→ Exporter
Main market players
Producers (e.g., farmers)
Suppliers (e.g., equipment manufacturers, fertilizer, biotech & chemical companies)
Grain processors (e.g., ADM or Corn Products International Inc.): because of their vertical integration, they tend not to be very sensitive to grain prices. They are able to pass on higher costs to the consumers of their products. They are also likely to be hedged against changes in either their input costs or their product prices
Traders: (e.g., Glencore International or Bunge Limited): very similar to grain processing companies in many ways, and in some cases even overlap. Similar to processors, they tend not to be very sensitive to grain prices. The relative stability of their profits allows them to usually borrow capital at favorable rates compared to other types of companies
Market is very competitive at the supply side as farmers can deliver to multiple elevators
Elevators compete for volume / farmers with all other elevators and grain users in a geographical area as this is the only way to stay profitable in a low margin environment

[Thomson Kneeland · Rating 4 out of 5]

Having been trading the grain markets all year, this book really straight me straight on a lot of the elements that go into the grain business from elevators, market carry, basis and more. As well as a bit of insight into seasonality, contract rollover and more. Though this is not a book on trading, it's the once place I've been able to learn about the grain business from a more inside business perspective. Well worth the read if you are trading grain futures and need to understand the whole supply chain better, as an easy read.

[Peter Tubbs · Rating 4 out of 5]

An excellent intro to grain marketing for the beginner.