Knowing how when or how much of your grain to sell is no easy task. Volatility, yield uncertainty and input prices are just a few of the many drivers that can affect your decisions.
Bob Utterback, president of Utterback Marketing and Farm Journal economist, says obviously producers are in the market to make a profit.
To do so, he says, you must determine your target price then pull the trigger once you reach those profit-making levels.
“I don’t want to hold out for the homerun. Babe Ruth was a popular guy, but he struck out a lot of times. In farming, striking out can be financially devastating.”
Utterback says another factor producers should keep an eye on is macroeconomic trends. The dollar, currency relationships and China growth rates can all have major influences on your market prices, he says.
To simply summarize smart marketing, Utterback says you need to:
- Develop what profit you want.
- Figure out what the market fundamentals is trying to give you.
- Then determine the best way to get your profit with the least cash flow and risk possible.
Listen in as he expands on these important marketing steps:
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