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Understanding Price Cycles Print

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Why prices move.

WHAT DRIVES AGRICULTURAL PRICES

Seasonal supply Weather Import and export flows Storage capacity in the market Currency movement, for traded commodities

WHAT THE SEASONAL PATTERN USUALLY IS

Prices low at harvest, when supply is abundant Prices rising as stocks deplete Prices highest before the next harvest

WHY THAT MATTERS

Selling at harvest is selling at the lowest price of the year.

WHAT STORING PROVIDES

The ability to sell later, at a higher price.

WHAT IT COSTS

Storage facilities Losses during storage Cash tied up Risk that prices do not rise

WHAT TO CALCULATE

Whether the expected price increase exceeds those costs.

WHY MOST SMALL PRODUCERS SELL AT HARVEST

They need the cash.

WHAT THAT COSTS THEM

The seasonal price difference, every year.

WHAT REDUCES THAT PRESSURE

Working capital Enterprises with different timings Arrangements permitting later sale

WHAT TO TRACK

Prices through the year, for your produce.

WHY TRACK

It is the evidence for deciding when to sell.

WHERE TO GET IT

Markets, traders, and published price information.

WHAT TO BE CAUTIOUS OF

Holding produce expecting exceptional prices.

WHY

Prices sometimes fall, and produce deteriorates.

WHAT TO CONSIDER

Selling in portions across the season.

WHAT THAT ACHIEVES

An average price, and reduced risk.


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