These past eleven months have been challenging for crop and livestock farmers alike.
A commodities broker insists on reflecting on such difficulties and learning from them.
Crop producers experienced a series of emotions, heading into the 2019 crop season. Planting dates were delayed, making many nervous about what would come of the crop.
Jim McCormick, branch manager of AgMarket.Net, states, “It’s not as bad as we thought,” citing 2019 harvest results. Furthermore, he hopes farmers can find time to reflect on this past growing season and learn from it.
“Yields are down from where they were a year ago and test weight is an issue in parts of the country, but in general, we have a pretty good crop,” McCormick said. “What we’re telling producers right now is the profitability and big prices could be fleeting.”
With that, AgMarket.Net encourages producers to look at realigning their marketing approach.
“If you can make money and lock in profitability, don’t be afraid to do that,” McCormick said. “There are a lot of tools out there. You can use options and crop insurance. That will lock in revenue and allow you to play and upward, as well as a downward movement in the market.”
“Taking advantage of profit opportunities is key as we look to another volatile year,” according to McCormick. He encourages producers to keep a close eye on the markets, as marketing opportunities lie ahead.
“The one thing about the market (is) it will move. The thing right now is to come up with a game plan. When you’re ready to get that opportunity, don’t be afraid to pull the trigger. I think there’s a decent shot the market’s going to rally,” McCormick said. “Cash basis is on fire around the country. I think that’s a good impetus that this crop is going to get smaller and it’s just a matter of time before the market reacts to give us an opportunity to sell this year’s crop, as well as start selling the 2020 crop.”