BEATRICE – Producers have a lot to think about as they sell their corn or soybeans…including worldwide weather, the size of crops both domestically and internationally, and trade relations, such as the effects of a tariff dispute between China and the U.S.
Economist Brian Basting of Advanced Trading, Inc., was one of the guest speakers at the Ag Management Expo, at Southeast Community College Tuesday.
:20 “manage your crops”
Basting encourage growers not to get wrapped up in guessing a price per bushel, but rather focusing on protecting your gross revenue by managing your bushels…setting a floor for selling a crop but allowing flexibility above that level.
:13 “manage the market”
Basting says one of the biggest surprises in early 2018 was weather…resulting in a 25% cut in corn production in Argentina and a similar reduction in Brazil. That provided an unexpected opportunity for U.S. corn growers in the export market.
Basting said also affecting markets today, is a significant increase in productivity of producers here and abroad, which has factored into increased competition in the export market.
:11 “and lower price”
Basting said market change happens fast, and a grower wants to closely monitor price movements, rather than simply attempting to predict where the per bushel price will go.
This year’s announcement by the Trump administration of tariffs on Chinese imports resulted in retaliatory tariffs by China, which affected soybean exports from the U.S. That dispute overnight, dropped the price on soybeans significantly.
Tuesday’s Ag Management Expo was sponsored by the Beatrice Area Chamber of Commerce, Southeast Community College and area businesses.