How do I market my grain effectively?

No one has a crystal ball. While you may not be able to predict the future, you can still strategize to make the best of market conditions. Start with a simple, critical question: When do I need to move my grain? Do I have time to wait for better prices?

Whether you need to generate cash, need the storage space or have other reasons, you need a plan to sell your grain proactively and with market conditions in mind.

Selling in increments is common practice – for example, 20 or 25 per cent is sold at different points throughout the year.

Every farm and every grain sale is different – each one involves unique goals, circumstances, and a different balance of risk and reward. Some farms might not have the same level of risk tolerance as others.

When to sell is a personal decision, and there’s an element of personal preference involved. The right selling approach will differ from one farm to the next, and having a plan will help to ensure your decisions are well-informed.

I often describe marketing strategies as either offensive or defensive. Defensive sales focus on locking in profits when prices are favourable, helping manage risk. Offensive sales are about seizing opportunities when market conditions suggest there’s potential for better returns. The key is to stay informed and understand how markets typically behave, especially in your region.

For example, the best approach to marketing canola in Alberta’s Peace Region may differ significantly from what works in Manitoba’s Red River Valley. Ask yourself: Should we react to short-term market movements? Should we take a more aggressive or more cautious approach right now? Is there one crop with a stronger outlook that deserves a different strategy?

Create a plan that considers a few possible market scenarios so you’re ready to adapt as conditions change.

A fear of missing out (FOMO) is something many farmers experience, especially when it comes to getting the most out of marketing grain. Having the right information can take you a long way.

A lack of control can be frustrating. Waiting for the top of the market can lead to decision paralysis and that “deer in the headlights” feeling during price swings.

Grain markets tend to rise gradually and fall quickly. Sudden downturns can feel harsh, while too much information can be overwhelming. That’s why it’s important to build a basic understanding of how markets work.

At their core, markets are driven by supply and demand.

In a demand-led market, users are actively entering the marketplace, generating longer-run ‘bull markets’ with rising prices. Be alert to supply shocks that can create brief price spikes as those opportunities may require quick action.

Conversely, in highly supplied markets, where many producers are pushing grain into the marketplace, prices typically decline, leading to ‘bear markets’ characterized by falling prices and weaker returns.

Seasonality also shapes supply and demand. In fall, large volumes of grain entering the market add pressure due to abundance. In spring, prices may rise as old crop supplies tighten or weather challenges affect planting. Be aware of these seasonal patterns and how they influence market trends.

Other factors influencing supply and demand include weather, politics, trade, border issues, tariffs and currency fluctuations.

To navigate this complexity, set a clear marketing plan, stick to it and review your results regularly to stay disciplined. Focus on beating the local average price and use an incremental sales approach to build consistency.

With so much to consider, don’t hesitate to ask for help. A trusted third-party advisor can support your decision-making, clarity and confidence.