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Mecardo Blog

Deferring grain pricing: More than one way to skin a cat.

Posted by Andrew Whitelaw on 11 January 2018

At this time of year, those lucky to have grain on hand will now be deciding whether it is best to sell their grain or hold on for higher prices. There are numerous ways of deferring pricing, and provide exposure to the market at a later date.

This short article will provide summaries of easily accessible options.

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Topics: Grain market / grain price

I don’t like the grain price, but I need the cash!

Posted by Angus Brown on 23 November 2015

It’s not often headers are out in south western Victoria in November, but just yesterday a grower started harvesting Canola next door.  As with many growers, it’s decision time in terms of marketing. In terms of Canola, the $20 fall in price in the last fortnight has made the initial plan to simply sell Canola at harvest now a little less palatable. 

Wheat prices have also eased as we moved into harvest, with wheat values falling on the back of lower international markets. These falls in price present a conundrum for the growers who need cash, but don’t like the price.

Does that sound familiar?

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Topics: Risk management, Grain market / grain price, Bank Swaps

Grain Swaps - farmers' friend or hazard to be avoided?

Posted by Robert Herrmann on 23 November 2015
  • “I won’t use swaps because if the market goes up I will lose”

  • “I have heard of a wheat farmer who lost his farm as a result of taking a Grain Swap”

  • “The bank always wins; they know more about the market than we do”

  • “With swaps, someone always wins and someone always loses”

Sound familiar?

These are just some of the statements we have heard from farmers when the issue of swaps is raised.

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Topics: Risk management, Grain market / grain price