Why farmers need to know about commodity tracking
Are you interested in commodity tracking? As a farmer, it pays to be aware of the latest developments in the industry. From cereal grains to oilseeds, there is a diverse range of agricultural commodities being sold on the local and global markets. Commodity tracking can help you decide which crops to plant so you can maximise the profits of your business. Find equipment for sale on AgriMag and take your business to new heights.
Commodity tracking explained
Commodity tracking involves investigating how well or badly a commodity is doing in comparison to other products that are available on the market. It involves monitoring the price of various products as well as the demand for them. Gathering this information has numerous benefits for your business.
Type of agricultural commodities
● Cereal grains: this commodity is grown as a source of food for both humans and animals. Wheat, barley, and rice all fall under this category. Monitoring the prices helps farmers decide which grain is most profitable to grow.
● Oilseeds: this category includes soybeans, canola and cotton. Oilseeds are grown for a diverse range of purposes, including for oil and use in the clothing industry. The meal can be used as a food source for animals, so this category is related to cereal grain commodities.
● Meat and dairy: these commodities cover a wide range of animal products, including hides, bones, butter, and cheese.
● Soft commodities: this category includes cocoa, sugar, and coffee.
● Miscellaneous: these commodities are well-developed on the market, but they don’t fit into the other categories. Miscellaneous commodities include lumber and rubber.
Importance of commodity tracking
● Increased profits
Commodity tracking provides farmers with details of the different commodities that are being sold and bought on the market. This insight is helpful when deciding which crops to plant as it gives farmers a better understanding of the supply and demand for various products. Commodity tracking can help farmers boost their profits as they’ll be able to use the information provided to calculate the expected selling price and demand for various crops and compare it to the expense of growing them.
● Successful problem-solving
Farmers will be able to monitor changing commodity prices. If the demand for a product is low, the farmer can do more research to discover the reason why interest has decreased. With more information, it’s easier to develop solutions to the issues of decreased demand and lower prices.
● Analyse high-risk situations
Another advantage of commodity tracking is that it provides farmers with useful details on high-risk products. This enables farmers to avoid losses by reviewing the information before investing in crops that could be difficult to sell.
● Discover new opportunities
Through commodity tracking, you can discover unmet needs on the market, which can lead to lucrative opportunities. Gathering information to discover gaps in the market can help to expand your business.
Now that you know more about commodity tracking, you can use AgriMag’s commodities page to keep track of the latest commodity prices.