Watch for Marketing Opportunities
Markets were closed yesterday in observance of President’s Day. Market breaks are a good chance for farmers and ranchers to pause and review their marketing plan. It’s easy to get caught up in the daily ups and downs of the markets, but it’s your plan that’s going to make you money.
Standard Grain’s Joe Vaclavik addresses the tendency for producers to latch on to bullish information and miss good marketing opportunities even when the market goes the right direction.
Vaclavik… “I think the take home is that if we get to a point at which 1. The news starts to turn really friendly. 2. The funds start to turn along this market. And sentiment overall just really shifts on a dime and goes from negative to positive. You're going to have to take a serious look at your grain marketing when things look the best or start to look better. I think that that is really the take home here from this China stuff. And there, I still think African swine fever is a problem. I still think coronavirus is a problem. And just an unknown maybe more than a problem short term is what sort of impact does that present a bigger picture. But just pay attention. If everyone starts to get positive. If the funds start to flip their position in this market. If sentiment shifts. If China starts to buy and, and we begin to see a shift in the narrative, don't let your grain marketing fall to the wayside. As a matter of fact, that's going to be the time to pay the most attention.”
Vaclavik recommends watching fund positions and China purchases for spikes that can serve as marketing opportunities.