Last week, PanXchange hosted a webinar titled “The Forward Contracting Hemp in an Oversupplied Market.”
The session, which will soon be available to the public, covered many aspects of price risk management, including fixed-price transactions, crop insurance, sales contracts and various legal issues regarding contract terms..
Here are three key takeaways:
- Kim Harris, a senior policy analyst at AgriLogic Consulting, stated that “they do not foresee any major changes for the 2021 crop year. Other than looking at possible expansions to new states or counties that weren’t included in the 2020 program and then some minor policy changes.”
- Julie Lerner, the founder and CEO of PanXchange, affirmed, “fixing prices is a sign of an immature market as all mature markets are negotiated as unpriced/ basis contracts. Mature markets hedge price risk in the futures market but negotiate physical deal flow directly …