There's two ends to the price rope; supply & demand. In seasonal farmning there's always a glut of product at harvest time but consistent demand for by-products throughout the year. That's why tolling JV is a good idea, IMO. In the grain crop markets grain storage companies make a fortune by buying cheap from cash strapped farmers at harvest & holding the grain for the glut to subside.
CLI with its income from the JV, ag services & the offtake is not cash strapped so , if neccessary it can wait, IMO.
We have friends who are major strawberry growers; they sell 25% of the crop in August (harvest time for $1/kg) to recoup costs and to remain liquid. the remainder is made into jam in a JV to be sold at Christmas & the New Year holiday break to yield a premium price. This is a micro business in comparison to CLI.
IMO, CLI has does one better, it presold nearly 30% of its crop in August at what appears to be a premium price at harvest now and it is keeping its powder dry on the remainder because unlike some small Oregon farmers, it doesn't have to sell now
If you are a T/A watching and trading the current volitility, then that's a different ball game and the nice thing about the market there's room for all of us. Dont blame others or the market; you made your investment dcision with your lollies.
PS: I just topped-up. Thank you seller.
All IMO only and investors should always consult a licensed financial advisor before making any investment decision.
CLI Price at posting:
4.5¢ Sentiment: Buy Disclosure: Held
