Counterintuitive marketing

Trying to outguess grain markets or any markets for that matter can lead to frustration. As farmers we sometimes make marketing decisions that are counterintuitive. How do buyers convince farmers to sell a particular commodity? Common sense would say that buyers raise prices to encourage sales. However, when prices are rising the tendency is to sit on the sidelines and wait for prices to move even higher. Many buyers report that sales typically boom in a dropping market. By that time greed has given way to fear and producers want to sell before prices drop even lower. Right now, there seems to be harvest pressure on the prices of both peas and lentils. Those are the crops with the most harvest progress and product is moving to market. Logically, the harvest pressure should be a signal to sit on the sidelines and not sell right now. In reality, it can have the opposite effect as even more producers try to capture prices before they go lower. No one can ever predict price trends with certainty so marketing decisions often lead to regret later on. Some observers believe there is going to be a bottleneck in the movement of many crops this fall. They liken it to trying to push a basketball through a garden hose. If that’s the case, prices are going to soften. The big question is whether or not they’ll bounce back later in the season. I’m Kevin Hursh. For up to date grain prices, visit www.dynagra.com. or call DynAgra, your independent ag retail, at 1.800.941.4811

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Kevin Hursh PAg CAC