Death comes to us all. Life's but a walking shadow | Supposedly one of the "often-cited" rationalizations for the futures market is that it prices risk of "future" production and supply. We've just seen the situation where it appears the "market" completely failed to properly account for weather risk of excess precipitation. People talk about the so-called "planting carrot" as an example of the market enticing more or less acres of production but there didn't seem to be much of a "planting carrot" this year.
I am told that crop insurance companies use futures to offset their risks but I don't know how they do that or whether they include things like excess precipitation in their calculations.
Maybe we're just asking too much of the "market".
On a related question. I hadn't sold any new crop because I thought the price was " too low" for me. Now I'm concerned about taking advantage of the increased price because I'm not sure at all about this year's crop even though the market appears to be calling for early sales. Will other producers like myself hesitate to make sales and the price might even go higher?
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Does this mean ....
