Commodity markets have been digesting a tidal wave of What if? questions: What if China is buying? What if Trump imposes tariffs? What if acreage falls? What if China isn’t buying?
Ed Broshinski, market analyst with Cargill MarketSense, says that managed money has been working its way through these scenarios, and that canola, specifically may be easing into its Goldilocks era — where supply and demand are just right.
Does that mean the market is giving a “sell some crop” signal? Broshinski says that that really has more to do with where farms and farmers are in their old crop sales. For new crop, many are comfortable at a 20 per cent sold level right now, considering that there are options available to cover some of the risk.
Broshinski says that having a sound grain marketing plan means not being forced to make a decision, even in the face of volatility or uncertainty working its way into the market. It’s important to be open to pricing opportunities, but not be forced to make a decision before you’re ready, he says.
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