Generally speaking, there are two different types of commodities in the world – those that are seasonally produced and those that are continually produced. The differences between the two have major impacts on the way that you analyze the supply and demand to determine fair value. Likewise, the metrics used to to discuss the fair […]
Finding and remembering websites for supply, demand, and weather information can be tough, so I’ve included a few of the major ones below. This is not a complete, or exhaustive list, and will be one that I continually improve on. Let me know if you would like anything added! NASS QuickStats FAS PSD Tables WASDE […]
After more than a decade of experience in and around commodity markets, I have learned (or at least think I’ve learned) some tips and tricks that make analyzing market fundamentals easier and would like to share them with you. Whether you are new to commodity markets, or are a seasoned veteran, you are sure to […]
Since commodities are all derived from some natural resource, it is important to understand those natural resources, their production practices, and the underlying market conditions. Without a firm understanding of these underlying principles it is very hard to have a firm understanding of what is driving the markets. In the grain and oilseed market primer, […]
By definition, a commodity is a good that can be uniformly supplied across space, time, and form without qualitative differences. Said differently, a bushel of corn is a bushel of corn – regardless of whether you are in Virginia or Nebraska. Commodities are usually either fully or partly fungible. With fungible properties, buyers and sellers […]
As a producer of commodities, you understand how important it is to manage the risk of price fluctuations in your finished product. Everyday I talk to people who are looking for cost effective ways to help manage this risk and ensure their profitability. Unfortunately, there are still many people out there that either don’t understand, […]
Most operators approach grain marketing with good intentions, unfortunately, sometimes they can be lead astray and down the path of accidental market speculation. Don’t get me wrong, speculation can be great, if it is intentional. When a producer or consumer unintentionally ends up speculating when their intent was to hedge, the results can be disastrous. […]
“Did I price my grain too soon?” With the recent rally in soybeans, this is a question that is being asked all too commonly. Going into the 20/21 growing season the demand outlook was weak, relatively large carry outs were expected, and producers had been making forward sales at levels that were profitable, but are […]
