WOYM – Markets With Matt

A few days ago, Aaron Harries and Justin Gilpin had the pleasure of speaking with Matt Hines, a licensed commodity broker from Loewen and Associates. 
Our conversation delved into the intricate world of grain marketing, risk management, and the global dynamics affecting wheat producers. Matt emphasized the importance of understanding market factors and developing effective marketing strategies to ensure profitability in an ever-changing landscape.

What You Will Learn

Market Dynamics: Understanding the factors influencing commodity prices, such as USDA reports, global trade, and regional competition.

Matt highlighted the significance of staying informed about market dynamics. For instance, the recent USDA crop report indicated a decrease in wheat production, which can directly impact pricing and availability. Producers must keep an eye on these reports to make informed decisions.

Risk Management: The necessity of developing tailored risk management plans for individual producers.

We discussed how crucial it is for farmers to have a risk management strategy that aligns with their specific needs. This approach allows them to navigate market fluctuations more effectively and safeguard their investments.

Quality vs. Quantity: The shift towards producing high-quality wheat varieties to meet market demands.

Matt pointed out that local elevators are starting to pay more for protein content in wheat. This shift underscores the importance of quality over quantity, as it can lead to better market prices and meet the specific needs of buyers.

Understanding Competition: Recognizing the competitive landscape, particularly the challenges posed by Russian exports.

We explored how U.S. wheat producers face stiff competition from countries like Australia, Russia, and Ukraine. Understanding this competitive landscape is vital for producers to position themselves effectively in the global market.

Actionable Marketing Strategies: Focusing on break-even costs and utilizing various marketing tools.

Matt provided practical advice for producers to understand their break-even costs and leverage marketing tools such as cash sales and options. This knowledge empowers them to manage risk and make informed marketing decisions.

What We Cover
(00:00) - Introduction to the Wheat's on Your Mind Podcast and guest Matt Hines.

(00:28) - Matt's educational background and career journey in grain merchandising.

(01:13) - Welcoming Matt Hines to the podcast.

(01:16) - Discussion about Matt's dual major in agriculture economics and milling science.

(01:40) - Matt shares his decision-making process for choosing his majors.

(02:25) - The relevance of Matt's milling science degree in his current work.

(02:51) - Insights on the value of a milling science degree in the ag industry.

(03:33) - Transition to discussing Matt's recent presentation on commodity markets.

(04:00) - Overview of the August crop report and its impact on the market.

(04:50) - Discussion on USDA's changes to wheat production and ending stocks.

(05:31) - The influence of the dollar price on the wheat market.

(06:12) - Matt explains the competitive landscape in the wheat market, particularly in Southeast Asia.

(06:22) - Insights on Egypt's recent wheat tender and its implications.

(07:17) - Discussion on the potential Russia-Egypt wheat deal.

(08:10) - Reactions to Egypt's large wheat tender and its market impac