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Marketing Risks Key Concern For Producers

Farm Credit Canada surveyed producers back in July on Risk Management and says the majority have strategies in place.
 
Craig Klemmer, FCC’s Principal Agricultural Economist says the survey showed 67% of farm operators reported a high level of concern for marketing risk, while 60% were concerned with production risk and 53% with financial risks.
 
“We’re constantly concerned by what the markets are doing, and what prices we’re going to see for our production. So, no big surprise that marketing risk tops the board.”
 
Klemmer says the good news is most producers are in a solid financial position to withstand short-term impacts on their business.
 
Marketing risks – like price and market access - were most prominent among beef, grains and oilseed sector producers at 74%, followed by those in the fruit, vegetable and greenhouse sector at 58% and the supply managed sectors of dairy at 55% and poultry at 53%.
 
Ensuring there is sufficient working capital was the most prominent financial concern across all sectors, followed by unfavourable changes in interest rates and meeting debt payment obligations.
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U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again

Video: U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again


The market was hoping for a US-China trade deal, but we got a trade “truce” for now from the keenly awaited Trump-Xi meeting at the APEC Summit.
China commits to minimum purchase commitments of 12 MMT of U.S. soybeans during the “current season” and a minimum of 25 MMT annually through 2028.
U.S. Treasury Sec Bessent said other Asian countries have agreed to buy additional 19 MMT of US soybean.
Soybean futures trading above $11 now- they normally tend to rally to $12.
As expected, US Fed cuts interest rates by -0.25% again in October to 3.75%–4.00%. No further cuts promised for this year but trade looking out to the Dec FOMC.
The Bank of Canada cut interest rates to 2.25% but raised concern over trade war damage.
Soy meal futures, remarkably, have had 14 consecutive higher close sessions. A bull market in soybeans is a bull market in soy meal!
Cattle futures lower as funds unwind out of cattle for now due to Trump headlines and objective to lower beef prices.
All major stock indices climb to new record highs. It was Mag 7 reporting week, which had mixed results. But we now have the first $5 trillion company in Nvidia!