Category: Ask FarmLink

Ask Farmlink: The markets are bearish, how do I manage price risk?

If you’re a farmer who didn’t do much forward selling in the last two years, you’ve likely been very happy with the outcome. If you haven’t priced crop for 2013-14 yet, however, it may not end up not having been such a wise plan. Many farmers are harvesting a big crop right now, and, at… Read more »

Ask FarmLink: Will I Lose Big Money Hedging?

Hedging is a big scary word to many farmers. And it’s understandable — it’s an account that can flucuate significantly, making it seem like you’ve lost money. But, unlike speculators that never grow or store crops, farmers are in a unique position to use hedging as a low-risk price management tool. Why? Because as your… Read more »

Ask FarmLink: Fundamental Analysis — What’s Behind S&D Tables?

The crop is in and growing, the sprayer is running and farmers are keeping an eye on fungicide timing. Which probably means, of course, that it’s time to think about what to sell off the combine. Those who are disciplined have likely already priced some crop, but many are just now getting comfortable with committing… Read more »

Ask FarmLink: How Does S & D Factor in to Crop Pricing Decisions?

Developing an opinion on crop prices and the direction they’re headed is not an exact science. Once you can move beyond expecting to be right all the time, it’s time to start putting some fundamental analysis to work for you. While many farmers are familiar with that term and supply and demand discussions, understanding how… Read more »

Ask FarmLink: How do Analysts Come up with Opinions on Market Direction?

Whether you do your own digging, subscribe to several news outlets or employ an analyst, making decisions about price direction requires a significant investment of time and effort. For many farmers, marketing and following the markets is an enjoyable part of their job. For others, it’s not how they’d like to spend their time or… Read more »

Ask FarmLink – Navigating the Learning Curve of Wheat Hedging

The new marketing environment around wheat in Western Canada offers producers a much greater level of involvement than they’ve ever had when it comes to managing price risk. Should producers choose to step out of the contract environment provided by their local grain companies and buyers and go directly to the futures and options market… Read more »

Ask FarmLink: Is the U.S. Drought Over? How Late Will Seeding Be?

How’s the weather where you are? It’s a common question because, even though there’s not one thing we can do about it, it’s a topic of endless fascination for many and especially farmers. Weather risks and events work themselves into the market conversations as well, as no one can control the weather, and ultimately it’s… Read more »

Ask FarmLink: Canola Hedging — Why and When

Farmers do an amazing job of keeping current on the latest agronomy findings, and many are keen to work on new and improved practices each year. But not everyone loves biology — some prefer the business side of farming and enjoy the time spent analyzing markets and setting up a hedging strategy. Each crop type… Read more »

Ask FarmLink: Why Don’t More Farmers Use Futures Brokers?

Whenever someone mentions risk management in grain marketing, someone also mentions futures, options, puts, calls and, eventually, most people’s eyes glaze over. Anyone who has done a marketing course has also run through a hedging example or five in their education only to find that these tidy examples involving one crop rarely mirror real life…. Read more »

Ask Farmlink: Where do I Start With a Marketing Plan?

When plans exist only in our heads and aren’t ever gone through with hard numbers, perceptions can start to over take reality. Crop marketing is no different. Before you get knee deep in the exciting world of futures and options, there’s a preliminary marketing plan to draw up first. In this Ask FarmLink episode, Chris… Read more »

Ask Farmlink: What Does a Cash Broker Really Do & How do I Choose One?

Price discovery is a key aspect of grain marketing. It can also be time consuming and take a lot of legwork. Once you do find a price you’re happy with there may still be a few hiccups before a transaction is completed, either because of cross-border services and paperwork or with grade disputes at the… Read more »

Ask Farmlink: What Do I Need to Know about Changes to the Canada Grain Act?

There are only a few days left for farmers to weigh in on impending changes to the Canada Grain Act. If all you’ve heard about so far are changes to user fees, you’re not alone. Much of the media attention has centered on the costs of running the Canadian Grain Commission, because, for the most… Read more »

New Series Connects Farmers & Marketing Specialists

Hot on the heels of announcing a brand new school, RealAgriculture.com is pleased to announce a new feature of the site — Ask FarmLink. The Ask FarmLink series will connect grain producers with the market analyst team of FarmLink Marketing Solutions, encouraging farmers to send in their toughest grain marketing questions. Whether it’s a question… Read more »