With quite a few world variables nonetheless affecting commodity market costs, placing on blinders and bringing the main target all the way down to particular person operations could be the wisest strategy to navigate the uncertainty.
Grain markets are nonetheless below the affect of from a number of main unknowns together with the Russia-Ukraine conflict, how a lot grain China will truly export, Taiwan strait tensions, to not point out the precise climate and it’s impression on yields.
As a few of these components developm whereas others keep at a stand nonetheless, she says farmers ought to take a look at their very own operation and achieve perspective on their margins and make advertising choices primarily based on these variables, oppose to tempting the market to see how excessive costs may go.
“We’re far sufficient into the rising season that inside a sure stage, , the place that [crop yield] may fall. And so using a few of these numbers, and simply attempting to just be sure you’re conscious of what your price construction appears to be like like and get a really feel for the place you’re at from an general margin, versus value per bushel, I believe, has actually helped to sort of take away among the emotionality of attempting to market on this market construction,” shares Setzer.
Narrowing the main target on this manner permits for a shift in perspective, she says. As an alternative of attempting to catch the best value in a market the place it may fall simply as shortly because it may rise, producers could make a worthwhile choice primarily based on their backside line. even among the lowest costs we’ve seen this yr, they’re nonetheless greater than we’ve seen year-over-year on common. When advertising by means of that psychological lens gives much more readability and optimism when locking in costs, oppose to being unsure and fearful.
Setzer goes into element as to what components are in play, particularly in the case of China’s exports, with RealAg Radio’s Shaun Haney, within the full interview beneath.