When it comes to managing risk, successful producers take a no-nonsense approach to hedging. No matter if your business is facing the commodities or manufacturing sectors, limiting exposure to unfortunate trends in asset pricing is a must. Although you can accomplish this task by taking a variety of approaches, futures can be a valuable part… Read more.
The marketing years of 2018/19 and 2019/20 will go down in history as being a pivotal time in U.S. agriculture. A budding trade war between economic superpowers and extreme weather patterns were key underpinnings of a nearly-unprecedented period of ag market turbulence. Given the extraordinary geopolitical and atmospheric events, the U.S. federal government launched a… Read more.
This has been a challenging year for agricultural commodities, specifically the corn and wheat markets. A fresh slew of tariffs and extreme weather patterns have placed additional stress on both the production and export sectors. If nothing else, the first half of 2019 has given market participants a crash course in agricultural volatility. So, what’s… Read more.
Although a seemingly elementary point, weather is a principal X-factor that affects corn, wheat, and soybean prices, as well as the futures markets for these commodities . It’s an integral part of the evolving supply/demand curve, as well as being the single largest influencer of production. Simply put, the weather is an elite driver of… Read more.
Accurately predicting the financial result of your grain harvest months ahead of time is certainly a challenge. A litany of factors impact the final bottom line, from crop yields to fluctuations in asset pricing. Fortunately for producers, grain futures trading can help maximize the rewards from a year spent in the fields.
As anyone associated with agriculture knows, El Niño is a significant factor in the marketing of everything from rice to corn. The warm temperatures and variances in regional precipitation can boost or compromise almost any crop’s yield. Futures market fallout is often extensive, prompting proactive risk management by using weather trading strategies. Although unique in… Read more.
As far as natural disasters go, few are more devastating than a hurricane. High winds, storm surge, and heavy precipitation can create uninhabitable living conditions. They are also capable of rendering crops useless and sending shockwaves through the ag markets. Hurricanes strike the Southeast region of the U.S. almost every year. Disruptive weather patterns are… Read more.
#1 Rule of Cash Marketing: Win the Basis Game with Futures and Options
The release of an economic data report can dramatically increase the degree of volatility facing a broad spectrum of asset classes. Metals, energies, currencies, and agricultural futures contracts are susceptible to wild swings in pricing following an official announcement.
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.