Because of the fast-depleting stocks of soybean and corn, the recent news of heavy rainfall and flooding in the U.S. hasn’t impacted the price outlook of these crops as much as it should have. This is a challenge for farmers who have acres of unplanted land at hand because of the flood damage. Their revenues may decline because of a lower (than usual) production, estimated lower price of these commodities, and water damage costs.
In the Ag market, there’s one consistent problem that pops up repeatedly: the fluctuation of price unexpectedly against previously invested costs into the commodity. How does a producer insure themselves against dropping prices when there’s no way to lower the cost invested in the commodity months ago?
As an agricultural livestock producer, you’ll know that the market for cattle can be volatile. Ensuring success in this market means implementing a host of measures ranging from catering to niche demands. Ultimately, you should have a strong grasp on live cattle marketing.
Food is a necessity for the ever-growing world population. Countries that heavily focus on the manufacturing and services sectors—like the United States—are cognizant of the importance of reliable and steady food supplies too.
Cotton producers possess the specialized skill of sowing, harvesting, and handling this quality commercial crop. There’s no doubt that this is a profitable industry, with around $6.01 billion in production value as of last year.
This year has witnessed unprecedented changes and unforeseen circumstances. COVID-19 has acted as a catalyst that brought about drastic alterations, leaving us with a new sense of “normal.”
The agricultural market functions in much the same way as other commodity markets do. The main difference between them is that agricultural markets tend to be more unstable, owing to the constantly changing prices of agricultural products.
Hedging is a risk management strategy that offsets losses in investments by taking an opposite position in a related asset. Here are some things that you should know about Hedging before getting started: