What started as a group of farmers with a common interest of marketing their crops 13 years ago has grown into an online community where the marketing themes of the day are dissected daily.
In the summer of 2007, that community took another step when Agriculture Online® Marketing Talk ( www.agriculture.com/marketingtalk) members struck up the idea of getting together for a bull session to discuss marketing strategies and crop conditions.
M arket analyst Roy Smith talks about seasonal market trends and the importance of FRom the discussion gRoup being aware of trends like fall harvest lows and the dead-cat bounce. to the meeting Room
The group of around 50 farmers
from 15 states – almost all of whom
But options are a great thing if you of years,” Smith says. “What causes had only known one another by their
can lock in a floor under that price; the dead-cat bounce is when buyers screen names and had spoken only
you can sleep a little easier at night,” come into the market to try to buy through Marketing Talk discussion
Nauman says. “You need to use op- inventory they’ll need for several groups – came together in August
tions with your grain if you’re sell- months in October when the glut 2007 and again in September of this
ing to elevators or ethanol plants.” is there. So we get that rally off the year to share ideas on crop marketing
harvest low, even though it may and to discuss some of the challenges
Keep timing in mind not look like there should be one, that lie ahead.
Whether trading options or fu- because we get it in big production Conversations range from simple tures, the psychology of the market- years and small production years.” reports on crop conditions to in-depth place is often tantamount to reality. discussions about options trading and Especially in the grain trade where Right place, Right time other functions of the marketplace. there are regular price trends at dif- In the end, it’s important not just “I had a good time just like last ferent times of the year, according to know about elements like options year. Enjoyed seeing old faces and to market analyst Roy Smith. That’s trading and seasonal trends, but to meeting with new and old friends,” part of why one common seasonal be able to put them to work. says Jim Meade, an Iowa City, Iowa, market trend is repeated each year: “You always question what you’re farmer and Marketing Talk member the dead-cat bounce. doing. Nobody knows the answer,” who’s attended both Marketing Talk
“It’s more of a psychological thing says Nauman. “You’ve got to catch meetings. “I always enjoy best the
– the crop is raised, you have no the trends.” talks given by farmers about crops in
more production risk, and harvest their areas. Not everyone agrees, but
is going on by October 3 in a lot we all get a good view of how others
see things.”
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www.agriculture.com/marketingtalk
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