Organic Operators Mitigate Risk with Slim Inventories

Organic Operators Mitigate Risk with Slim Inventories

The only cure for low prices is low prices. Organic feed grains are trading defensively, and purchasing habits have changed to reflect the current market environment.

Our analysis and survey of merchandisers show that spot or T+3 (three months ahead) purchases make up approximately 80 percent of the organic grain purchases to acquire inventories. Spot purchases can potentially reduce prices compared to paying a fixed annual price, but it depends on various factors such as market conditions, supply and demand dynamics, and price fluctuations.

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