Spring Forward

Apr 09, 2022


Spring Forward

Just as the earth is round, all things living have their own cycles. I view the spring season as the starting point of a cycle to look forward to the season ahead, just as Daylight Saving Time in March when clocks are turned forward. I want to wish all the UFC patrons a safe and productive spring season for the many of tasks that are instore!

The typical cycles of the markets have all been disrupted as a result of the many world events. The normal peaks of product demand that fundamentally dictate the peaks in price are not aligned with the typical annual cycles. This is true for all markets that UFC does business. Logistic challenges lingering from employee shortages caused by COVID outbreaks and restrictions is a cog that started the cycle to change shape. Abnormal harvest volumes in addition to new or modified logistic paths have created new peak cycles from the grain markets which have been altered even more with international conflicts. These international conflicts have altered the normal cycle and flow of many energy and agricultural input products. All of these factors have significantly impacted the fundamental economics of the supply and demand of the products we all buy and sell to manage and run our businesses.

UFC continues to look forward on ways to adopt practices to maintain its business within these ever changing and historically fundamental markets. New strategies to limit risk of huge price fluctuations and invest in storage to ensure physical product is available when supplies are limited or logistically cannot be delivered within the timeframe needed.

The UFC team has come together over the last several years through the difficult times of refocusing the business and is working as a unified team to service all of you. Therefore, we are well positioned to react quickly and efficiently as opportunities and/or challenges arise. UFC’s financial health and future outlook is strong which allows and supports the ability to capitalize on the next opportunity.

-Jonathan Olmscheid, Chief Financial Officer

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