Mark Gold, Top Third Ag Marketing
I believe the top lesson from the 2022 crop year is farmers need to put aside the market hype and look to sell grain on rallies, or at least protect high prices with put options.
The Russian invasion of Ukraine gave farmers plenty of opportunity to sell corn and soybeans at higher-than-normal prices.
Farmers should be concerned with export demand. China and Russia are developing closer ties with each other. Compounding this issue is the potential for record crops in South America, despite the drought conditions in Argentina. If the U.S. dollar has a significant break in price, that could help increase our exports.
The U.S. has been hit with drought markets the past two to three years; I would expect better conditions this year. If we combine big U.S. crops with huge South American crops, the world will be flush with grain.
Farmers had better look at protecting profitable prices with put options, until the size of their crop is known. Beware of the recession in China and the U.S. The one word I would use to best describe the grain markets is vulnerable.
Read More
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Matthew Kruse: Avoid Market Noise and Stay Focused on Price Targets
Naomi Blohm: Use Seasonal Grain Tendencies to Your Advantage This Winter
Bill Biedermann: The World Needs Both North and South American Bin Busters
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