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Market volatility can bring opportunity

An agricultural economist with Advance Trading says trade uncertainty is causing elevated market volatility.

“It can be viewed as fear, or it can be viewed as opportunity.”

Brian Basting tells Brownfield farmers need to focus on their marketing plan and variables within their control.

“There’s just so much going on right now, whether it’s tariffs, whether it’s geopolitical, you can fill in the blank, and volatility is going to be with us.”  He says, “I think it’s going to spill over into commodity markets. It just has to.”

He says producers can utilize several marketing tools to manage risk in volatile times.

“There are opportunities there to seize those higher prices, whether it be rolling up put options, whether it be making a forward sale, but also give yourself flexibility.”  He says, “You want to remain as flexible as possible, and you want to leave that upside open, but you also want to keep the downside covered.”

Basting says U.S. planting progress, or lack thereof, is likely to compound already volatile markets, so farmers should be prepared to respond accordingly.

AUDIO: Brian Basting – Advance Trading