Risk Management for 2011: Grain Market Comments

If we can assist your operations with a grain market supply/demand inquiry, please contact:

Edgar Hicks

402.884.0066 x111

Market Comments covers weekly developments from Wed. to Tues.

Market Comments: 1/5/11
The Price of Risk Management in 2011

The USDA will release its Annual Crop Production Report on January 12th and its 2011 Outlook Forum will be held in Virginia on February 24th and 25th.

2010 saw the most accelerated movement in commodity prices in recent history and projections for corn in 2011 make it appear "obvious" that prices will see very little retreat, for more visit the USDA Feed Grain Baseline Briefing. As a contrarian who remembers 2010, is there real management "opportunity" in prudent contingency preparation? Given current price projections, is the ethanol industry really going to have 5 billion bushels of corn use in 2011?

Click for Full Article in the WSJ

We believe positions are unique to each person's risk bearing ability, marketing strategy and crop conditions, therefore we give no blanket recommendations. The risk of loss in trading commodities can be substantial, therefore carefully consider whether such trading is suitable for you in light of your financial condition.