Bob Utterback has more than 26 years of experience and offers producers a disciplined approach to marketing.
Concerns for producer marketing
Feb 13, 2009
It was a pleasure seeing a lot of producers down at the National Farm Machinery show this week in Louisville, Ky. I was a little concerned about prices before I went to the meeting and now I’m very concerned. Producers are sitting on more corn and beans than I would like to see at this time of year. Second, they are inclined to hold until summer for a weather scare market. Little to any new crop inventory has been sold because their costs are up and they want prices well above current trading prices. We are doing this in an environment where the outside market influences are getting more bearish and demand appears for both corn and beans to be getting weaker.
Coming back from the meeting, I have to suggest that many are now getting into a "hope" phase of marketing. Hoping that holding inventory is not wrong, hoping that a weather event will occur but not in our backyard to rally prices, hoping the government programs cause inflation for our products but not for what we are going to buy!
Starting next week you are going to start hearing a lot more comments about why as a producer you need to be watching the gold, energy and interest rate markets more aggressively in developing an overall marketing program to protect profits.
In a nut shell, we are going to have to have strategies in place to protect against inflation in fuel prices and interest rates along with the potential of price declines in selling price. Are you ready?
Yes I’m very nervous about the future but fortunately we have time to prepare ourselves to take advantages of the opportunities ahead rather than sitting back and hoping the government going to bail us out! If you are interested, e-mail Laura for more info firstname.lastname@example.org.
Final comment: We are now in the crop insurance season. We realize it’s a big financial expense but taking out an 80% CRC crop insurance program on beans could really give you a solid financial reward. By having the insurance in place and then selling the cash the potential for returns will be huge. If you have any questions about crop insurance give Rowland a call here at UMS at 1-800-832-1488.
If you want to go over details or would like to read more daily recommendations regarding reownership or marketing strategies, email me at email@example.com or firstname.lastname@example.org.
BEFORE TRADING, ONE SHOULD BE AWARE THAT WITH POTENTIAL PROFITS THERE IS ALSO POTENTIAL FOR LOSSES, WHICH MAY BE VERY LARGE. YOU SHOULD READ THE “RISK DISCLOSURE STATEMENT” AND “OPTION DISCLOSURE STATEMENT” AND SHOULD UNDERSTAND THE RISKS BEFORE TRADING. COMMODITY TRADING MAY NOT BE SUITABLE FOR RECIPIENTS OF THIS PUBLICATION. THOSE ACTING ON THIS INFORMATION ARE RESPONSIBLE FOR THEIR OWN ACTIONS. ALTHOUGH EVERY REASONABLE ATTEMPT HAS BEEN MADE TO ENSURE THE ACCURACY OF THE INFORMATION PROVIDED, UTTERBACK MARKETING SERVICES INC. ASSUMES NO RESPONSIBILITY FOR ANY ERRORS OR OMISSIONS. ANY REPUBLICATION OR OTHER USE OF THIS INFORMATION AND THOUGHTS EXPRESSED HEREIN WITHOUT THE WRITTEN PERMISSION OF UTTERBACK MARKETING SERVICES INC. IS STRICTLY PROHIBITED. COPYRIGHT UTTERBACK MARKETING SERVICES INC. 2009.