The agriculture industry serves as the foundation of the entire global economy. Well-informed market strategies are vital to keeping things flowing up the chain as they should. The perceived simplicity of farming does a disservice to the awareness it requires to maintain control of your product while so many factors can affect your crop. Grain marketing is one such commodity that runs the world, touching so many other facets of production before ending up on shelves.
This representative of a grain corporation outlines the complexity of playing such a key role in the global market. Much more of farming is risk assessment than people tend to realize.
When raw materials are the market you deal in, there are a lot of factors besides simple supply and demand to consider. As the rep says, if the next season’s weather is going to yield a bad crop, that’s something you need to be able to anticipate, either investing more product while the market is favorable or cutting losses before they can actually make you lose.
She speaks specifically of global exchange as a Canadian farmer often selling on an American market, how the awareness needs to extend beyond basic business sense. You have to be able to process currency exchange rates between your company and its partners, and how any factors affecting them will absolutely affect you. Looks like this into the often unseen corners of commerce are important to see for white-collar dealers who often don’t understand what it takes to work at the materials level of economics.