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Ontario's middle east | I never said it worked well for all the producers....... Nor do I think it has to. I will not comment on how many farmers should trade futures. IDK that answer. I know some that are more than capable of doing it, but are not interested in margining positions and that is there call. I merely advocate producers have a basic understanding of some market dynamics that influence merchandising decisions. My producers would tell you that I advocate being an aggressive forward seller via target orders. I believe that there is some predictably in basis patterns but price predicting on futures is not time well spent. The best way to move yourself into the price maker roll in lieu of the price taker roll, is to make offers on what you will sell grain for. Get it in your head that the goal of hitting the high is not realistic and a recipe for failure. The goal should be to sell for a good price and move on. The sooner you enter that target order and get it working the more time the market has to fill it.
I find it somewhat peculiar reading all the angst on here about the market's functions. The market is working for you right now. It has a very important job ........ Stimulating demand. I didn't see a lot of "the markets broken" posts here, from crops guys when the market had the important job of rationing supply in 2012. The livestock guys squealed and were told to suck it up and pay the price. Just like then, the market is likely to move too far in its quest to get the job done. When the market is wrong, it don't pay to be right...... | |
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Maizeing, continue discussion on price setting
