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.
Energy costs are an unavoidable reality facing a broad spectrum of industries. For example, if you’re involved in transportation, agriculture, or even retail, it’s likely that you have a line item on the monthly budget exclusively for energy.
One of the most unpredictable and influential factors facing economic output is the weather. Natural disasters, abnormal seasonal extremes, and even unexpected precipitation levels can have dramatic consequences on both industry and consumption.
From a production standpoint, it’s an undeniable truth that core-business proficiency is crucial to staying profitable over the long haul. Whether you’re marketing energies, metals, or agricultural products, efficiency is a primary determinant of your success.