Spring Insurance Price Mutes Activity

April 3, 2013 04:02 AM
Spring Insurance Price Mutes Activity

There was not much activity in recent weeks from the advisers in the Archer Financial Services, Inc. Ag Hedge Program. Hedging appeared to be muted by the setting of the spring insurance price, notes Scott Harms, Archer Financial Services.

"With the average 2013 corn crop sales already at 38% and 2013 soybean sales at 23%, the advisers seemed comfortable waiting to see the results of the insurance price before determining their next step," Harms says. The little activity that did occur was advancing 2012 crop soybeans sales, as old crop prices failed to surpass the $15 level. Additionally, the anticipation of Brazilian soybeans hitting the global market had advisers pulling the trigger, he says. With the weather becoming more of an issue and the March 28 stocks acreage report looming, trade activity is expected to remain limited.

Marketing 30 Years. The biggest shifts during the previous 30 years are increased volatility and global factors influence on domestic commodity prices. "The increased volatility might largely be seen as negative, but that increased volatility also provides opportunity," Harms says. "It forces the producer to be ever more vigilant in developing a marketing plan."

In addition to the fundamental changes, including a demand base that more than doubled and a new price plateau in commodities, the advisers have had to adapt to the increased number of players in today’s market and what triggers them to enter or exit commodities.

If you have any questions or comments regarding the track record information, contact Mark Soderberg, Tim Smith or Scott Harms of Archer Financial Services, Inc., at (800) 933-3996.

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