Nevil Speer Market volatility

Industry At A Glance: Corn Volatility

Market volatility is a double-edged sword.  On one hand, it allows for more pricing opportunities. On the other hand, it makes decision-making with respect to timing more challenging. Tighter carryover contributes to volatility as the market tries to absorb news and ration demand accordingly. That’s been especially evident in the corn complex during the past six years. Weekly price variation has increased over time; not to mention some severe swings within any given week (for example, the final week of September saw prices retreat nearly 30¢, then finish the week limit-up following USDA’s Grain Stocks report). Given the outlook for tight supply, it’s likely that weekly volatility will continue to remain relatively high. What’s most important is the impact on end-users.

What adjustments have you made in your operation to adapt to rapidly moving prices in the feed sector? Register your thoughts on this question and the data above in the comments section below. 


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