Many farmers tell me they do well at picking prices. Maybe some do, but many do not. If farmers were good at predicting prices, most would have sold their 2016 crop for over $4.25 and would have their 2017 crop already sold for $4. Unfortunately, most farmers didn’t get $4.25 for their 2016 corn and few have much 2017 sold. Sadly, many farmers are fooled into thinking they are good at picking prices, when in actuality they probably have been lucky.
Some farmers have the misconception that I try to predict prices and sell at the high. Unfortunately, I don’t know when the market will be at its highest. And here’s the thing: no one else knows either.
Since I don’t know where the market will go, I need to be prepared to sell all the time. That way I can take advantage of opportunities when they become available. The key is knowing your breakeven points and selling when the market hits adequate profit levels, because that may end up being the top of the market.… Continue readingRead More »