Better Farming - January 2017

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Better Farming January 2017 Story Idea? Email 43
market. “The size of the South
American crop is the second import-
ant driver that could move markets in
2017,” said Gervais. (The first driver is
global demand, he said.)
Due to strength of soybean prices
relative to corn for the 2016 crop,
there have been speculations of
increased soybean acres and decreased
corn acres for the 2017 season.
However, “never count corn out” of
your production plans, said Gervais.
Number one tip for grain
marketing this year
With varying factors weighing in on the
2017 marketing year, Gopal and Gervais
provide some final tips for navigating
the commodity markets.
Gopal said farmers should avoid
“panic selling” at low prices. “Each
marketing year, various factors will
impact the market and increase market
volatility, such as politics, monetary
policies (central interest rate moves,
taxation, etc.), USDA releases, and
unforeseen weather variations. The best
plan (may) be to let these factors play
out and give grain markets a chance to
react and bounce up to marketable
levels.”
However, Gopal reminded farmers
to be cautious with market moves, and
set aside time from their busy sched-
ules to formulate marketing decisions
for the next growing season.
Gervais also suggested the need for
a strong marketing plan. “As profit
margins of crop producers get tighter,
farm management becomes extremely
important – and that includes market-
ing skills.
“Grain marketing must be seen as
an integral part of business operations
and risk management,” he said.
“Volatility could pick up later in
2017 and commitment to marketing
plans will be tested out.” BF
BETTER BUSINESS
Due to strength of soybean prices relative to corn for the 2016 crop,
there have been speculations of increased soybean acres and decreased
corn acres for the 2017 season.
McKinneMike/iStock/Getty Images Plus photo