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Give these markets a tranquilizer!

Agriculture.com Staff 07/06/2010 @ 5:20pm

Market volatility continues to fester throughout the commodity world as market fundamentals and investors continue to clash, sending prices in dynamic directions, sometimes within minutes or days.

What is the savvy farm marketer doing right now? Well, you can't calm the markets -- that's not within your control. But you can be a calm decision-maker when it comes to your farm marketing. Here are a few things you can be doing right now:

Prepare: There is no time like the present for marketers to be prepared for any market scenario -- prices moving a little or a lot, in unexpected directions. Get going with your development of possible price scenarios, and what you will do in each scenario. That way, you're prepared for anything.

Pounce: Take advantage of volatility when it offers positive returns for your family operation. Lock in those profits when they are available.

Seasonally, many commodity markets have a tendency to peak price-wise in May and June of most years. Any rally that is available due to weather concerns, demand needs, or export strength will be an opportunity to lock in prices.

Corn and soybean futures, despite bearish fundamentals, continue to hold on to long term uptrends overall. A quick look at the hog and cattle markets shows that we are near all-time highs, and, as history has proven, high prices will cure high prices. Explained another way, what goes up must come down.

So, be aware and in touch with your local cash market, know the marketing tools available to you, and be ready to capitalize on opportunities when they arise.

Tie it to your business: To know if positive returns are being offered, you need to know your bottom line cost of production.

If you have questions, you e-mail Naomi, or post a marketing question in the Women in Ag forum.

The data contained herein is believed to be drawn from reliable sources but cannot be guaranteed. Neither the information presented, nor any opinions expressed constitute a solicitation of the purchase or sale of any commodity. Those individuals acting on this information are responsible for their own actions. Commodity trading may not be suitable for all recipients of this report. Futures trading involves risk of loss and should be carefully considered before investing. Past performance may not be indicative of future results. Any reproduction, republication or other use of the information and thoughts expressed herein, without the express written permission of Stewart-Peterson Inc., is strictly prohibited. Copyright 2010 Stewart-Peterson Inc. All rights reserved.

Market volatility continues to fester throughout the commodity world as market fundamentals and investors continue to clash, sending prices in dynamic directions, sometimes within minutes or days.

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