Last year was full of highs and lows when it comes to the grain markets. While 2020 may be one from the history books, be sure to note its gleanings in terms of insights for being a better marketer in the years ahead. Market analysts share what lessons they hope farmers gained from 2020.
“Think strategically when it comes to marketing. Be ready for bullish or bearish surprises that can occur at any moment!” –Naomi Blohm, Total Farm Marketing senior market advisor
“The agricultural industry peaked out in stress early 2020 before trade tariffs were reversed under the successful phase-one trade agreement. Six months after that day in January, life has completely changed for most producers. Those who did a good job of planning during the good years were able to maintain ownership on paper or inventory and sell when the markets responded to positive news.” –Bill Biedermann, AgMarket.Net hedging strategist
“We all need to understand the difference in marketing in a bull market versus a bear market. The last big bull market was 2012. In a bear market, decisions are based on a comparison of today’s price to where the market has been which makes it hard to make any sales. A bull market is the opposite. Producers look at today’s price and it’s higher than where it was a week ago so the conclusion is it must be a good sale. In major bull markets corn and soybeans are almost always sold too early.” –Richard Brock, Brock Associates president
“Grain markets, like most commodities markets, try to force producers out at cheap prices. So many analysts could dream that a bull market was in offing. Cheap prices cure cheap prices. When everyone is bearish it’s time to look for buying opportunities. When everyone is bullish it’s time to sell something.” –Mark Gold, Top Third Ag Marketing founder
