Bin-busting crops are never something to wish away, but the simple laws of supply and demand eventually come in to play when everyone has a lot of crop to sell.
While that’s oversimplifying grain markets, the overall message is clear — decent quality wheat, corn and other grains are going to be easy to find this year, and that has prices pulling back to lows farmers haven’t seen in quite some time. While there are certainly ways and means to manage price risk, a key part of making pricing decisions if having a good bead on where you think markets are headed well ahead of time. In this edition of RealAg Markets, Moe Agostino, of Farms.com Risk Management, explains where the downward pressure is coming from on grains, where they might find support and why forward pricing can be a farmers best friend.
This interview was filmed at Canada’s Outdoor Farm Show. Click here for more coverage of the 2013 show.
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