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Commodity Consulting and Marketing Services 866-334-9779 Yates City, Ill. Are You the Gatekeeper to Your.

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Presentation on theme: "Commodity Consulting and Marketing Services 866-334-9779 Yates City, Ill. Are You the Gatekeeper to Your."— Presentation transcript:

1 Commodity Consulting and Marketing Services Yates City, Ill. Are You the Gatekeeper to Your Farms Financial Future? Cathy Ekstrand – Senior Market Advisor Stewart-Peterson Group Futures trading is not for everyone. The risk of loss in trading is substantial. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.

2 Disclaimer: Futures trading is not for everyone. The risk of loss in trading is substantial. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.

3 Why Marketing? Questions to ask yourself… Do you help with marketing? Why or why not? Marketing determines your farms income: Its how you get paid.

4 OPPORTUNITIES AND RISKS ARE GREATER THAN EVER BEFORE!

5 Market Volatility World Political Unrest Supply & Demand-difference in crop value World & Domestic Weather Record Demand Funds Economy CHINA

6 Why Worry about Marketing Risks and rewards are greater than ever Outside market influence Similar farming practices – Marketing can be what separates a good producer from the average Harder to cost-manage your way to profitability

7 Importance of Marketing Higher prices= Higher income and continued success Greater risks/rewards Extreme price swings-volatility High production costs Risk of narrowing profit margins Outside market influence Next generation/retirement

8 What can you do? Ask questions Find time to learn Find a source for marketing education If you need help, look to find it Look for someone you trust Listens to you Has your values in mind

9 Qualities of Good Marketers Discipline to make decisions… when lacking all the information Uses strategy, does not react to latest trend Invests time to learn marketing tools Willingness to ask for help Do women make better marketers?

10 Emotional Attachment????

11 Grain= $$$$

12 Hedging Selling or buying of futures or options contracts as protection against the risk of loss due to changing prices in the cash market and serves as a substitute for selling or buying a commodity in the future. – A hedge provides a way to lock in a price floor or ceiling for what you plan to do in cash market in the future. – Always correlate hedging with your cash product.

13 Strategy vs. Outlook Outlook: – Is the expectation or belief about the future – It is a habitual or characteristic mental attitude that determines how you will interpret and respond to situations Strategy: – A plan of action designed to achieve a particular goal – A plan of action to achieve a successful advantage

14 Strategy vs. Outlook Decision Criteria: Value Time of year Trend Cash flow How much to sell

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16 Stewart-Peterson Group Commodity consulting and marketing services firm that works with producers, helping them to maximize opportunities and manage risk. In West Bend, Wisconsin since 1985 Offices in Yates City and Champaign, Illinois Work with producers in U.S. and Canada I have advised producers for over 10 years.

17 Market Scenario Planning SM What are you going to do if the market goes up some? What are you going to do if the market goes up a lot? What are you going to do if the market drops some? What are you going to do if the market drops a lot?

18 Strategy & Budget Create and discuss a marketing strategy – Include your entire team Budget funds - just like you budget funds for seed, fertilizer, equipment, rent

19 Whats happening now? Corn this year vs. last Acres report due out March 30 th Back-to-back short crop years – high prices This year, should projected corn acres get planted and have a trend line yield, prices could fall – a lot. Soybean price levels – profitable.

20 What to consider? Marketing is going to become even more important to you as it becomes more difficult to cost manage your way to profitability and as price volatility remains. Will your marketing strategy allow you to become not just profitable, but competitive in the years to come?

21 Where to begin MAP – Marketing Assessment Profile – A series of questions we developed to reveal what, if anything, is holding back your marketing. – Helps determine where you may need help. – 20 to 30 minutes – Free with no obligation, $100 guarantee

22 Stewart-Peterson Can Help Market360 ® Stewart-Peterson, Inc.s signature consulting fee based service created for busy producers who understand the importance of having comprehensive marketing strategies in place. Provides marketing strategies for up to three years of crop. We do not focus on where the market will go; instead, on preparing clients for whatever the market does. Full Service Advisory: A service of Stewart-Peterson Group, Inc. A producer has a one-to-one relationship with an advisor. The advisor is a resource for a farmers hedging needs and often times cash sale advice as well. We are here to help producers learn how to implement strategies to help manage pricing opportunities and risks.

23 For More Information: Cathy Ekstrand, Senior Market Advisor Stewart-Peterson Group 115 W. Main St. Yates City, IL Office Cell

24 Disclaimer: Futures trading is not for everyone. The risk of loss in trading is substantial. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.

25 If you would like more information about how you can get started marketing well, contact us for more free resources. Cathy Ekstrand, Senior Market Advisor Thank you.


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