Author
Parcell, Joseph L.
Extension marketing economists commit substantial resources to outlook and market analysis. Producers demand this information and use it to make production and marketing decisions. This study analyzes responses to a marketing survey of producers and extension marketing economists to discern similarities and differences in their perceptions regarding market timing, futures market efficiency, and risk management. Producer and extension perceptions are consistent with regard to several marketing issues, although they are not always consistent with published research results. Both producers and extension economists disagree that producers will receive a lower average price by forwarding contracting, and many do not believe hedging reduces risk and lowers expected return. Extension marketing economists rate risk reduction as a less important goal of marketing strategies than do producers.
Discounts and premiums for wheat quality factors at a specific location can be affected by the quality of wheat at other locations. We estimate the effects of protein and test weight levels of Kansas hard red winter and North Dakota dark northern spring wheat on the protein and test weight premiums of each other. Additionally, we determine the effect on premiums of protein and test weight and discounts of shrunken/broken and damaged kernels at different locations within each region from changes in wheat qualities at other locations within the same region. Results indicate that spatial competition was important for protein and test weight, both between the two wheat regions and within the same region.