By Jonathan LaPorte
As the calendar rolls into March each year, most U.S. farmers have usually paid for or secured most of their input needs for the season. But after another year of tightened cash flow and mixed commodity prices, some farms may have held back from early input purchases. Farms in such a scenario may find themselves still needing to secure all or most of those needs heading into spring.
Purchasing inputs in the spring doesn’t mean that all price opportunities are gone. Rather, the opposite is true, especially if markets are showing possible signs of volatility for both price and supply. For farms still needing to secure inputs, the best path forward begins with staying informed about market conditions.
Understanding market conditions
Understanding market conditions is essential when buying farm inputs. The available supply of products and demand, or need, for their use initially set market prices. Prices then move up or down based on different factors that affect supply and demand. Considering factors and their impact can help determine when to buy farm inputs.
Source : msu.edu