Are they worth the charge? What is their motivation; is it pure to help make the best decision for each producer? Or are their hidden agendas that don't tie together with the individual producer goals?
Get the Unbiased Market Insight and Advice You Need to Make Better Business Decisions
- Trend. The current near-term and long-term market directions and their affect on prices.
- Noncommercial outlook. Knowing the current position and direction of speculative traders is critical to understanding where prices are likely to head.
- Commercial traders. Large commercial traders offer the best insight into the fundamental supply and demand situation for the underlying commodity.
- Seasonal index. Historical seasonal price trends are important indicators of potential direction.
- Price probability. Indicates how current prices compare to historical norms — and where they are most and least likely to go.
- Volatility. The speed of the market helps determine proper strategies with insight into how expensive options premiums are — the more volatile the market, the larger the premium.
In my honest opinion the biggest mistake is advisers or anyone trying to help producer make good marketing decisions is the fact that blanket plans and strategies are used too often; each producer has different goals, needs, and timing. So each plan needs to be customized and changeable yet pro-actively designed to meet the desired goals.