Thoughts on Navigating an Uncertain Environment
Last spring, things in the grain world were a mess. Huge swaths of the country were late planting or not planting at all. The general sense was that...
Weighing the Market's Needs with Those of Your Business
The grain market is good at telling us what it wants - on a broad scale with spreads and more locally with basis.
Spreads and basis give any grain business a clear signal of how to maximize margins and/or avoid losses. Of course, it always will be necessary to balance what the market is asking for with what you need to do to keep your business operating.
Let's look at a few scenarios:
If your business requires carrying grain all season, managing spreads to lock in acceptable carry ahead of time and having a good forward contracting program for grain are vital.
Last spring, things in the grain world were a mess. Huge swaths of the country were late planting or not planting at all. The general sense was that...
The volatility in production, futures prices, basis, and spreads of the last few years have caused many of us to abandon the idea of a “normal”...
2 min read
Knowing your grain company is key to navigating the change between carry and inverted markets Differing views on how to define transitions exist....