http://www.agriculture.com/markets/analysis/corn/marketing-rules-f-success-in-2013_9-ar26629
Although this is not directly relevant to speculators’ investment strategy, I’ve found this interesting article via agriculture.com. It mentions farmers’ perspectives on investments. It has provided valuable advice to farmers as investors for their productions. Essentially, they have listed the following tips in this article for the farmers:
1. Get your inputs secured. With the large increase in global wheat and feed grain acreage in 2013, fertilizer and seed prices will be moving higher.
2. Try to arranging a flex-rent lease with your landlords. With corn at $8 and soybeans at $16, there are some unrealistic rent expectations for next year.
3. Stay realistic and disciplined in your marketing. The worst thing to do is to sell ahead a lot of crop one year and then sell none the next year. You could end up wrong two years in a row.
4. Stay aware of the global economic problems and the challenges we’ll face after the election this year. A strong U.S. dollar could pressure grain exports and grain prices. Farm prices and farm profits will be pulled down in the next one to two years unless some fundamental changes in how global governments – including the U.S. government – handle the current debt problems.
5. Take a long-term view by following the roadmap in the business plan. For instance, when the author has talked to his Illinois farmer, the author reminded him that despite the losses he suffered from many farms, he should look back at what he succeeded and calculate risks by being a disciplined “scale-up” seller and “a seasonal seller”
References
Grains-corn eases on harvest pressure, soybean level (Oct 5 Friday, Reuters)
http://af.reuters.com/article/commoditiesNews/idAFL3E8L53Y120121005
Corn Prices Jump, report on shrinking supplies (Wallstreet journal, sept 28, 2012);Owen Fletcher and Bill Thompson
http://online.wsj.com/article/SB10000872396390443389604578024180178198160.html
Marketing rules for success for 2013
http://www.agriculture.com/markets/analysis/corn/marketing-rules-f-success-in-2013_9-ar26629
Chicago corn,wheat edge lower on corn harvest, Business recorder; Pakastian’s Financial Daily. Oct 5, 2012.
You’re good at finding cool source! It’s a good education source!