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5 Ways Futures Brokers Can Help Producers Prosper

March 7, 2018 by Daniels Trading| Ag Marketing

The production of ag commodities is more than just a business, it’s a lifestyle. Whether a producer is cultivating grains, nurturing livestock, or processing dairy goods, efficiently delivering a tangible product to market is the name of the game.

An ag marketing firm can be a valuable asset in the pursuit of operational efficiency. Through the development of a customized marketing plan, a dedicated team can help improve many facets of a producer’s business, not to mention the bottom line.

Guide to Smarter Ag Marketing

Market-Specific Education

No matter what the product or commodity is, many related markets contribute to asset valuation. Although being an industry expert is not an option for most, acquiring a working knowledge of the derivatives markets can be useful when integrating them into your business.

A competent ag marketing firm is a wealth of educational resources. Through their guidance, developing a basic aptitude in the following areas can be a solid first step to approaching the markets confidently:

  • Understand the vital aspects of market behavior
  • Identify fundamental drivers of asset value
  • Introduction to technical analysis
  • Trends and patterns in cyclical asset pricing

No doubt about it, knowledge is power. By becoming familiar with the basics of how the futures and options markets function, producers can successfully use these markets.

Promote Capital Efficiency

Saving money is a favorite pastime of profitable businesses. The ag sector is no different. Regardless of size or location, one thing that all ag producers have in common is a burning desire to eliminate unnecessary costs.

Ag marketing firms can help reduce market-related expenses in the following ways:

  • Limited transaction fees: ag marketing firms often waive fees related to portfolio management or information services.
  • Competitive commissions: Due to their volume of trade, larger firms have several pricing advantages in regards to commissions and trade-related costs.
  • Complimentary evaluations: A thorough examination of a long-standing marketing plan is likely to reveal areas ripe for cost-improvement.

Access to reduced fees and commissions, coupled with the expertise necessary to overhaul an existing marketing plan, is a recipe for savings.

Manage Risk

Ag producers are susceptible to many factors that can destroy profitability. Inclement weather, storage issues, supply bottlenecks or international politics can cause havoc for farmers and ranchers. Producers can mitigate many of these risks through comprehensive hedging strategies.

No doubt about it, hedging is a complex and integral part of preserving hard-earned capital. From an operational standpoint, the market experience and know-how of an established ag-specific firm may bolster hedge performance to unexpected heights.

Save Time

Saving time and money go hand in hand. An ag marketing firm understands this fact and will provide many options for remaining up-to-date on important developments. Technology has given producers the ability to connect seamlessly via mobile or desktop software applications, as well as the traditional telephone.

Whether monitoring open positions, placing or managing orders, or staying abreast of breaking news items, a support staff is at the ready to answer any and all inquiries in a timely fashion.

Expert Guidance and Advice

The derivatives markets are dynamic environments where change is the norm. Having access to an industry professional who is familiar with the ebb and flow of the contemporary marketplace can be indispensable.

When the unexpected happens, being able to actively tailor your strategy becomes a necessity. An ag marketing firm can provide in-house resources or find the solutions required to overcome some unforeseen obstacles and preserve the bottom line.

Selecting an Ag Marketing Firm

Choosing an ag marketing firm may seem like a daunting task, but with a little effort it can be a very rewarding endeavor. A great place to start your search is with Daniels Trading’s Ag marketing team. Backed by a futures industry leader since 1995, Daniels Ag Marketing has the tools to help build your marketing plan.

Guide to Smarter Ag Marketing

Filed Under: Ag Marketing

About Daniels Trading

Daniels Trading is an independent futures brokerage firm located in the heart of Chicago’s financial district. Established by renowned commodity trader Andy Daniels in 1995, Daniels Trading is built on a culture of trust committed to the firm’s mission of Independence, Objectivity and Reliability.

Risk Disclosure

THIS MATERIAL IS CONVEYED AS A SOLICITATION FOR ENTERING INTO A DERIVATIVES TRANSACTION.

THIS MATERIAL HAS BEEN PREPARED BY A DANIELS TRADING BROKER WHO PROVIDES RESEARCH MARKET COMMENTARY AND TRADE RECOMMENDATIONS AS PART OF HIS OR HER SOLICITATION FOR ACCOUNTS AND SOLICITATION FOR TRADES; HOWEVER, DANIELS TRADING DOES NOT MAINTAIN A RESEARCH DEPARTMENT AS DEFINED IN CFTC RULE 1.71. DANIELS TRADING, ITS PRINCIPALS, BROKERS AND EMPLOYEES MAY TRADE IN DERIVATIVES FOR THEIR OWN ACCOUNTS OR FOR THE ACCOUNTS OF OTHERS. DUE TO VARIOUS FACTORS (SUCH AS RISK TOLERANCE, MARGIN REQUIREMENTS, TRADING OBJECTIVES, SHORT TERM VS. LONG TERM STRATEGIES, TECHNICAL VS. FUNDAMENTAL MARKET ANALYSIS, AND OTHER FACTORS) SUCH TRADING MAY RESULT IN THE INITIATION OR LIQUIDATION OF POSITIONS THAT ARE DIFFERENT FROM OR CONTRARY TO THE OPINIONS AND RECOMMENDATIONS CONTAINED THEREIN.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE. THE RISK OF LOSS IN TRADING FUTURES CONTRACTS OR COMMODITY OPTIONS CAN BE SUBSTANTIAL, AND THEREFORE INVESTORS SHOULD UNDERSTAND THE RISKS INVOLVED IN TAKING LEVERAGED POSITIONS AND MUST ASSUME RESPONSIBILITY FOR THE RISKS ASSOCIATED WITH SUCH INVESTMENTS AND FOR THEIR RESULTS.

TRADE RECOMMENDATIONS AND PROFIT/LOSS CALCULATIONS MAY NOT INCLUDE COMMISSIONS AND FEES. PLEASE CONSULT YOUR BROKER FOR DETAILS BASED ON YOUR TRADING ARRANGEMENT AND COMMISSION SETUP.

YOU SHOULD CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES AND FINANCIAL RESOURCES. YOU SHOULD READ THE "RISK DISCLOSURE" WEBPAGE ACCESSED AT WWW.DANIELSTRADING.COM AT THE BOTTOM OF THE HOMEPAGE. DANIELS TRADING IS NOT AFFILIATED WITH NOR DOES IT ENDORSE ANY TRADING SYSTEM, NEWSLETTER OR OTHER SIMILAR SERVICE. DANIELS TRADING DOES NOT GUARANTEE OR VERIFY ANY PERFORMANCE CLAIMS MADE BY SUCH SYSTEMS OR SERVICE.

GLOBAL ASSET ADVISORS, LLC (“GAA”) (DBA: DANIELS TRADING, TOP THIRD AG MARKETING AND FUTURES ONLINE) IS AN INTRODUCING BROKER TO GAIN CAPITAL GROUP, LLC (GCG) A FUTURES COMMISSION MERCHANT AND RETAIL FOREIGN EXCHANGE DEALER. GAA AND GCG ARE WHOLLY OWNED SUBSIDIARIES OF STONEX GROUP INC. (NASDAQ:SNEX) THE ULTIMATE PARENT COMPANY.

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Risk Disclosure

THIS MATERIAL IS CONVEYED AS A SOLICITATION FOR ENTERING INTO A DERIVATIVES TRANSACTION.

THIS MATERIAL HAS BEEN PREPARED BY A DANIELS TRADING BROKER WHO PROVIDES RESEARCH MARKET COMMENTARY AND TRADE RECOMMENDATIONS AS PART OF HIS OR HER SOLICITATION FOR ACCOUNTS AND SOLICITATION FOR TRADES; HOWEVER, DANIELS TRADING DOES NOT MAINTAIN A RESEARCH DEPARTMENT AS DEFINED IN CFTC RULE 1.71. DANIELS TRADING, ITS PRINCIPALS, BROKERS AND EMPLOYEES MAY TRADE IN DERIVATIVES FOR THEIR OWN ACCOUNTS OR FOR THE ACCOUNTS OF OTHERS. DUE TO VARIOUS FACTORS (SUCH AS RISK TOLERANCE, MARGIN REQUIREMENTS, TRADING OBJECTIVES, SHORT TERM VS. LONG TERM STRATEGIES, TECHNICAL VS. FUNDAMENTAL MARKET ANALYSIS, AND OTHER FACTORS) SUCH TRADING MAY RESULT IN THE INITIATION OR LIQUIDATION OF POSITIONS THAT ARE DIFFERENT FROM OR CONTRARY TO THE OPINIONS AND RECOMMENDATIONS CONTAINED THEREIN.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE. THE RISK OF LOSS IN TRADING FUTURES CONTRACTS OR COMMODITY OPTIONS CAN BE SUBSTANTIAL, AND THEREFORE INVESTORS SHOULD UNDERSTAND THE RISKS INVOLVED IN TAKING LEVERAGED POSITIONS AND MUST ASSUME RESPONSIBILITY FOR THE RISKS ASSOCIATED WITH SUCH INVESTMENTS AND FOR THEIR RESULTS.

TRADE RECOMMENDATIONS AND PROFIT/LOSS CALCULATIONS MAY NOT INCLUDE COMMISSIONS AND FEES. PLEASE CONSULT YOUR BROKER FOR DETAILS BASED ON YOUR TRADING ARRANGEMENT AND COMMISSION SETUP.

YOU SHOULD CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES AND FINANCIAL RESOURCES. YOU SHOULD READ THE "RISK DISCLOSURE" WEBPAGE ACCESSED AT WWW.DANIELSTRADING.COM AT THE BOTTOM OF THE HOMEPAGE. DANIELS TRADING IS NOT AFFILIATED WITH NOR DOES IT ENDORSE ANY TRADING SYSTEM, NEWSLETTER OR OTHER SIMILAR SERVICE. DANIELS TRADING DOES NOT GUARANTEE OR VERIFY ANY PERFORMANCE CLAIMS MADE BY SUCH SYSTEMS OR SERVICE.

GLOBAL ASSET ADVISORS, LLC (“GAA”) (DBA: DANIELS TRADING, TOP THIRD AG MARKETING AND FUTURES ONLINE) IS AN INTRODUCING BROKER TO GAIN CAPITAL GROUP, LLC (GCG) A FUTURES COMMISSION MERCHANT AND RETAIL FOREIGN EXCHANGE DEALER. GAA AND GCG ARE WHOLLY OWNED SUBSIDIARIES OF STONEX GROUP INC. (NASDAQ:SNEX) THE ULTIMATE PARENT COMPANY.

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