Selling During Times of Rising Commodity Prices
Commodity markets have risen substantially with wide fluctuations from day to day and week to week over the past number of months. Add in the fact that old crop prices are higher than new crop prices, and you may find it hard to decide when to market your new crop grain.
Farmers have seen volatile markets and upward moving prices in the past. However, the 2021 commodity marketing environment is not one we have experienced recently. As the U.S. farm economy comes out of an extended period of low prices, farmers are feeling the pressure to lock in higher prices but are hesitant as they do not want to miss the market high by pricing too early.
In this article, Extension professionals discuss how producers can make decisions about pricing new crop grain by understanding the forces driving the market, and also through defining their farm goals and objectives.