Get Ready for Potential Market Volatility on March 31
With a warmer-than-average winter across much of the U.S., you’re probably itching to get to the field. But don’t blow past an important date for the grain markets on March 31. That’s the day the USDA will release its Prospective Plantings report for 2017. Every year the report tends to provide direction to the market—up or down, often significantly.
How do the projections get established? The USDA’s National Agricultural Statistics Service (NASS) sends a survey to 84,000 farmers across the country, asking for information on the types of crops they intend to plant on how many acres, and the amounts of grain and oilseed they can store on their farms. All in all, the process is designed to hold up statistically, though later adjustments often occur. Whether your own plans align with the report or not, until weather factors take over later in the season, planting intentions are an important part of what the market has to work with.
That means you need to get ready. Prices could move in line with your expectations—or against them. Don’t get paralyzed by this uncertainty. Use the coming days to establish price objectives, followed by a plan to execute that protects your risk. Think big-picture: your remaining 2016 crop, as well as the crop you intend to plant this year.
You have the coming days to establish a price point you can live with—and then make sales and contracts that protect that price.
One strategy that works well during this transitional time of year is ADM Offer Management. It puts you in control. You simply offer to sell a certain number of bushels at a fixed price by a given date. The process can be very streamlined and easy while you’re on the go. You make offers directly to ADM online through our ADM Offer Management app. You can manage multiple offers at a time and track or adjust them 24/7, getting notifications by email or text.
Of course, you can’t delegate pricing decisions to technology. That still requires careful thought and calculation. But you’re not alone with that challenge either. Your ADM Merchandiser can walk through various scenarios and talk over your marketing choices—with your best interests in mind.
Yes, the farm economy has become more stressful. But the world will always need food—and farmers! Operators who adapt can thrive. Proactively plan, and take every opportunity to work for profitable sales. Prepare for known market drivers like the Prospective Plantings report.
Download the ADM Offer Management app today from iTunes or Google Play. And contact your ADM rep for help planning your 2017 grain marketing—starting with some key decisions by March 31.
ADM is providing this communication for informational purposes, and it is not a solicitation or offer to purchase or sell commodities. The recommendations in this communication do not take into account any particular individual’s or company’s objectives or needs, which should be considered before engaging in any commodity transactions based on these recommendations. The sources for the information and recommendations in this communication are believed to be reliable, but ADM does not warrant or guarantee the accuracy of the information or recommendations. ADM or its affiliates may hold or take positions for their own accounts that are different from the positions recommended in this communication. The information and recommendations in this communication are subject to change without notice.