Price or Market Risk

Price or market risk refers to uncertainty about the prices producers will receive for commodities or the prices they must pay for inputs. The nature of price risk varies significantly from commodity to commodity.

There is one presentation in the core midwest Annie’s Project. It is Grain Marketing. Price or Market risk will be addressed with topics that fit the dominant productions systems for an Annie’s Project site. For some locations that may be livestock, fruit, vegetable, flower, forestry, or direct marketing.

Grain Marketing
Objectives

• Increase awareness of grain marketing terms: bid, offer, contract, flat price, spot price, futures, and basis
• Learn how to use a bid sheet
• Understand the use of the most common grain contracts
• Understand how to use cost of production to set price targets for selling corn and soybeans

• Corn and Soybean Price Basis, File A2-40
• Corn Price Basis, File A2-41 (Copy the page from your part of the state, pp. 1-6. You can double side it with the correct page from Soybean Price Basis, File A4-42)
• Soybean Price Basis, File A2-42
• Example bid sheets from United Farmers Mercantile Cooperative (The presenter will use her own company’s bid sheet.)
• CME Group Current Corn Futures In the Charts column, click on the Price Chart icon for the nearby futures contract month.
• CME Group Corn Contract specifications
• CME Group Current Soybeans Futures In the Charts column, click on the Price Chart icon for the nearby futures contract month.
• CME Group Soybeans Contract specifications
• Crop Decisions - Markets
• Livestock Decisions - Markets
• Current Outlook, Profitability & Weather Information
• Commonly Used Grain Contracts