Agriculture as a business

Published: Jan. 25, 2022 at 6:09 PM CST
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(25 NEWS) - When we think of agriculture, we think of things right here close to home, but agriculture is a global business I had a chance to sit down and speak with Chip Nellinger, President of Blue Reef Agri-Marketing.

Yeah we do risk management for large farming operations so -- selling the grain and the specifics of when you should sell, how you should sell and the price risk that producers face right now is just unprecedented.

So we help come in and consult with large farming operations -- row crop -- here across the Midwest really not just Illinois but we’re in about thirteen different states. So it is interesting in this year -- is more so -- you have this Chinese New Year -- you know celebration that goes on in Asia.

China is the biggest buyer of U.S. grains as well as a lot of other -- agricultural commodities.

So around that time you also have the January crop report from the USDA that gives us our final yields from the old crop -- this crop that we just produced this last fall harvested.

It’s kind of a transition because the market just to figure out what was the final crop size last year, how much that might affect acreage in planning decisions coming up this coming spring and then China coming out of their new year’s holiday kind of makes a determination of ‘what’s this south American crop size’ -- and they’ve had their challenges down there the last month or two as well with some drought situations in southern Brazil across Argentina.

It’s a very uncertain time frame with what the crop size was, what the south American crops going to be the and then how much China it may or may not by additionally from United States because of a potential shortfall production in South America.

A lot of other Asian countries -- of course India is a big producer of some agricultural commodities in particular wheat but -- you know Taiwan, Japan, South Korea still all that major major buyers of U.S. grains.

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