Was this the most difficult season ever? I’m not sure that’s completely true, but I’ve been in this industry for 40 years and can’t remember a season quite like this one! While you don’t wield much influence over weather or international politics, take a look at what you can control.
It started off with a cold, wet spring that led to planting delays and poor germination. That became a very hot, dry early summer that stressed crops, only to turn into a cold, wet, late summer. Fall brought wet and snowy conditions that hampered harvest for several months. Even now, some crops remain out in the field where they’ll likely remain until spring.
Throw in US/China trade relations and the latest Presidential tweets containing good and bad news. What a roller-coaster that created. Or how about Canada’s own trade issues with China, India, Italy, and Saudi Arabia? There were several elections, African Swine Fever and wheat falling numbers that no one has ever seen before. The list goes on…
The good news is that most farms were able to harvest enough crop to be able to survive until next year. It seems like “next year” is a constant mantra in Canadian agriculture. Surely 2020 just has to be better than 2019!
In the meantime, it’s a good idea use grain contracts that can defend you against the kind of craziness we saw this year. It is possible to reduce or even eliminate downside risk and still participate in a rally. There’s so much that’s not in your control, so why not manage what you can with the tools that are available.
After a year like this one, a sound marketing plan is going to be more important than ever. Talk to your MarketSense advisor to determine what kind of a plan is a fit for you.