Bad Start for the Markets

[4GFarms]

What is the reason behind this latest drop? And a big drop that is! Looking more and more that we need to spend money on this crop to increase bushels to sell for less! Haha! Farming is the best way to make a living, when you control so little about your business.

[monte]

I saw that, soybeans and oilseeds getting hammered down limit.
Was there new bearish news after last week's usda reports?

Weather must be good in us Midwest.

[bigzee]

Plain and simple ........ rain makes grain!!!!
There's not a dry area in the world.

[farmaholic]

Suck it up and take your medicine like a man!!!!

Your profitability isnt THEIR concern.

Just keep top dressing fert and spraying fungicides to produce more to compensate!

easy.....

[boarderbloke]

Wheat's hanging in there not bad, considering,

not to discount how it's been repeatedly ****d over the last three weeks.

[errolanderson]

It's not entirely good North American crop ratings that are dropping these prices . . . .

Slowing global economic plus banking worries in Europe plus Brexit have funds moving money. Commodities in-general were hard hit today. The exception was precious metals. December silver hit $21.25 per oz over night on investor unease/fear.

Also, the U.S. Fed is now hinting that rates might go down, despite all the media drum-banging of rising rates . . . normalization. U.S. 2nd quarter GDP was be an interesting revelation, likely well below the Fed target of 2% growth.

This is not 'pick-on' the western Cdn farmer. Cattle market is also straining with recent fresh lows in the Alberta fat market. And the fallout in the energy sector is far deeper than that of agriculture. This is a global market that is in critical financial trouble. Central banks are preparing for easing (more rate drops), but it will no longer work.

A disciplined marketing plan that takes advantage of profitable market price rebounds via cash and commodity market strategies is a solid management decision. If you believe the market owes you a profit, your business may be jeopardize in the current global economic environment.

[crusher]

Errol,
I should cut and paste that last paragraph on my office wall.

[farmaholic]

Oddly enough most other business supplying us with goods and services are able to price their products that ensure margins, all while also supporting bloated management, labour, etc. While Producers are supposed to simply "accept" what is given to them. I refuse to sell what I don't have or gamble at the "Futures and Options Casino". Options aren't free and like any "insurance"....the company doing the insuring makes money, otherwise would they offer them?....Actuarials got it figured out.

The Market may not owe me a profit but most everyone else took theirs while I tried to make mine!

[farming101]

I have never written an option and yes most expire out of the money but
they can be useful and can add to the bottom line.
No need to keep them to expiration if their value goes up.