Seasonal market variations and their importance to Iowa farmers
Farmers who follow the markets know that livestock and grain prices vary from month to month with a certain amount of regularity. Drouths, business depressions and booms may alter or distort seasonal price movements in any individual year. But farmers know that on the average some prices are highest in the winter while others are highest in the summer. Marketings of farm products, purchases of feeder stock, average weights of market receipts, cold storage holdings and feeding ratios also follow definite seasonal patterns. The wise farm manager knows it will pay him to study these seasonal market patterns and plan his production in their light.
It isn’t always wise to plan production so as to hit the market in the season of highest prices. In many cases such a production plan would increase costs more than enough to offset the gain from higher prices. But a careful study of seasonal variations in prices and supplies will help farmers plan production so as to hit the market which ordinarily offers the greatest opportunity for profits, considering both production costs and probable sale prices. This bulletin has been prepared to provide farmers with the material necessary to study and understand some of the more important seasonal market variations.