How to Manage Volatile Grain Markets Ed Usset CFFM [Listen]

Ed Usset is a Grain Marketing Specialist with the University of Minnesota Center for Farm Financial Management. I called Ed and asked him for advice for farmers on how to deal with these crazy volatile grain markets caused by Russia invaded the Ukraine. You could argue we had volatility even before the Ukraine war caused by high demand and weather issues in South America. "The war caused added fuel to the fire."

Putting it in perspective, I have read that Russia and the Ukraine produced around 30 percent of the world's wheat supply and 12 percent of the corn. They should be planting now or soon just like farmers in the United States. Ed said we are in uncharted territory as we have never experienced a disruption like this in a major grain producing region. You would have to go back to World War I or II to have a disruption like this and that was well before our time!

Ed said he has been to the Ukraine and they have very fertile deep black soil as good as in Southern Minnesota and Northern Iowa. The wheat and corn grown in Russia and the Ukraine is exported onto the world market through the Black Sea. Right now the ports have been shut down and Russia has mined areas of the Black Sea. Another words even if a truce were signed today no one knows how long it will take before transportation gets back to normal!

Click on the link and listen to Ed discuss grain production in the Ukraine and how farmers can deal with the grain market volatility cause by the war!