Many are wondering when is the best time to price any remaining old crop.
The last five years have seen dramatic shifts in commodity price volatility. It's highly likely that this shift in volatility is here to stay for the foreseeable future. Agricultural commodity markets were relatively stable in the past, due to factors such as government programs, weak demand, favorable weather and high carryover stocks. In the past market environment, producers could successfully use simple crop marketing strategies because the market fundamentals were more stable and prices were less volatile.
Pricing grain any time of year is difficult. It can be especially difficult when prices are rallying and the outlook remains friendly. How much to price? When to price?
Naomi Blohm takes a break from her regular marketing column to share tips for staying safe during the harvest.
There is an old adage in the marketing world that there are three emotional phases of marketing: Greed, Hope and Fear.
Greed refers to times of high commodity prices. During a period of high prices, complacency sets in, and producers might opt not to price any portion of their grain or livestock because the prevailing thought is "surely prices must remain high for an unspecified duration of time."