It all depends on what side of the market one is on whether they have been given a treat today or a trick! What could we learn from this week, possibly to be more balanced in positions or take profits when they arise. Yes but if the positions are hedges and the crop is still out in the field then what. This week’s price action has frustrated many when if they really think about it, there was nothing they did wrong in their marketing practices. So what now?
I think it’s time to step back, clear our minds and think how we can do better in the future. For those of you who are just beginning or just want to refresh yourselves with marketing terms, ideas, and strategies, on Tuesdays and Thursdays we will have articles regarding terminology and marketing. If you have ideas, email me at firstname.lastname@example.org.
So what is marketing? It is figuring out what you want, how you want to achieve it, and being able to take advantage of market moves in order to accomplish it. With influences from outside and global markets, it’s difficult to know when to:
- begin marketing
- manage price risk exposure
- defend previous actions taken if the market moves unfavorably or
- pull the trigger when a price objective is reached.
Add the emotions of farming, family and work to all of the above and marketing becomes difficult at best to know when to do anything. Some producers wait, some decide to wait till tax time to wonder if they made money or not, and then they are those who actually try to have a plan.
A market plan should take advantage of both the buy and sell side of the market. One must be able to anticipate changing trends in the foreseeable future to help in long-term management. We strongly suggest producers must have a plan on how to sell [and defend their sale once they are made]. We believe a good marketing plan involves both sides of the equation, cost control, and sale price management.
One added note, be sure to watch Bob Saturday on the U.S. Farm Report. Be safe!
This material has been prepared by a sales or trading employee or agent of Utterback Marketing Services, Inc. and is, or is in the nature of a solicitation. This material is not a research report prepared by Utterback Marketing Services, Inc. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.
Distribution in some jurisdictions may be prohibited or restricted by law. Persons in possession of this communication indirectly should inform themselves about and observe any such prohibition or restrictions. To the extent that you have received this communication indirectly and solicitations are prohibited in your jurisdiction without registration, the market commentary in this communication should not be considered a solicitation.
The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that Utterback Marketing Services, Inc. believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.
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. 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 prohibited. Copyright Utterback Marketing Services, Inc. 2014.