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Veteran Advisor

Oh yeah.........it's a "market"

Well you know we have had it beaten into our head, that it's a free market..that  our prices we get is determined by a "market".......

 

but could market be known as another name......such as a monopoly ??

 

I get this information from the following:

www.cftc.gov/dea/options/ag_lof.htm

 

 

we have this idea that there are many players in the market place, that there is no way that there could be anything going on,

just too many people..........

 

oh really ???

 

Here are the TOTAL number of players in the markets.....don't believe me, look at the above website......

now I will say this....it is not clear if the whole market, or just the options.......either way, the number

of people that are "the market" is shocking............in most instances, far more farmers.........

 

wouldn't it seem that the stronger would be the larger group.......but not if they can make you think different.

 

SRW   461 

HRW  286

HRS  122

CORN  847

OATS  40

RICE  64

HOGS  328

LIVE CATTLE  440

FEEDER CATTLE  261

BUTTER  38

MILK  84

NON-FAT DRY MILK  39

CME MILK  20

DRY WHAY  21

CHEESE 69

SOYBEANS  626

SBO  308

SBM  278

COTTON  279

FROZEN OJ  71

 

 

just think about that for a while.........this whole big country and these people are the market..........

 

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9 Replies
Senior Contributor

Re: Oh yeah.........it's a "market"

Yep it’s sad 😢 it really is a joke
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Honored Advisor

Re: Oh yeah.........it's a "market"

All the markets are getting like the cattle market, you got Bobby buying the cows, Zing buys the fats and Jerry the jockey buys the rest and the only other bidder is the auctioneer, if you don`t like that, haul `em to Joslin.  With hogs, you contract `em with the company or you don`t have a market.  It`ll go that way too with grain unless things are moving so rapidly that step will be skipped.

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Honored Advisor

Re: Oh yeah.........it's a "market"

Grain will be different.

 

You will get paid a nominal/token fee by the seed company to be a grower/producer for them. They own the genetics, it's their grain. And they will control it from womb to the end user.

 

They already are allowed to patent things that nature produces on her own. You think health care is convoluted ? You ain't seen nothing yet.

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Honored Advisor

Re: Oh yeah.........it's a "market"

Yes ......... It was a stroke of genius to buy up seed companies and patent traits.... and create a market that requires them..  At a time when all it took was economic hype and a trend line promise, to get congress and administration to ignore the monopoly and collusion.

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Veteran Advisor

Re: Oh yeah.........it's a "market"

Well, you can get out of the business.

You can use what marketing skills and opportunities are available to make a profit.

You can contract and grow a crop for pay.

You can take your land and skills and produce in a market where there is the freedom you demand.

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Veteran Advisor

Re: Oh yeah.........it's a "market"

opps, sounds like jim found the eggnog that ma put in the back of the frig, so it could age for the holidays !!!

 

contract a crop to make a profit...........sorry, "but rag weed" isn't legal in this state.

 

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Honored Advisor

Re: Oh yeah.........it's a "market"

Gotta get him out of the basement once in a while............................

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Honored Advisor

Re: Oh yeah.........it's a "market"

You can use what marketing skills and opportunities are available to make a profit.

 

I never met anyone who did that.....  Not even when corn was $6+.....   (Atributed their profit to marketing skills or marketing opportunities)

 

That statement only fits traders who do not produce.

 

What I did see in producers, was the perception of locking in profit early, and then allowing time to eat up their profits as costs ramped up for 12 months before that crop was actually sellable...(steel, labor, fertilizer. seed, fuel, technology, taxes, irrigation parts and fuel, etc)  and finally end up with small margins or losses and a bad hangover for the coming years.

 

One of the best "Production" marketers I know lives three miles north on me and has no bins, and is never quite "up to date" in production trends.  His first concentration this time of year for 2018 is buying or locking in price of inputs for that next crop year.  Then later in the year he knows if that opportunity is profitable,  and he knows how many acres of which crops he will have to market.  

 

Every farmers puzzle is different........... beware of the "one size fits all" mentality

 

Well, you can get out of the business.   We all plan to at some point..... hopefully gracefully

 

You can contract and grow a crop for pay............. We all are,  marketing is just negotiating the terms....

 

You can take your land and skills and produce in a market where there is the freedom you demand. ......... Well, there are 18 months(actually 3 years) in the marketing year, if I price my 2018 crop in the first month,,,, I feel like I sacraficed 17 months of freedom...... and opportunity....... and assumed risk on both production and marketing sides....... But then I know I will have better marketing opportunities throughout the year...

 

That is why the neighbor is right.... We get good basis and demand locally.... Controlling costs has more effect on profit that marketing will ever have.

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Honored Advisor

Re: Oh yeah.........it's a "market"

correction --  I have met one or two who want to sit in the office and market...... so they attribute their great land, great water reserves,  great employees, great location for grain buyers, strong financial backing, and intelligent wife all to their personal "marketing" skills.    Smiley Happy

 

I wasn't honest is that statement........ above......... but IMO most farmers don't evaluate themselves very well.

 

What jim advises probably fits his environment...   

 

---------------

 

I purposefully, as I suspect many do, aviod looking at another man's wife other than in polite glance.   

But one time I will look at her eyes every time is when the husband is described as doing things on his own or is given lots of credit for accomplishment

A partner who can avoid expressing an opinion in facial expression usually has great character.

 

 

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