prices cycle up and down several _{times per year. Each price peak SprIng Sell SIgnalS for beanS} comes as a result of something stimulating traders to a buying crescendo. By this time in your farming career you have learned that the news is always bullish on 252 251 the peaks, making it difficult to sell.

Soybeans

2006-07 Crop Year 2007-08 Crop Year

Trading days

Average crop year price

News is dismal when prices are at $12.56 a low, which makes it easy to give up. Decide today that you will make sales when prices are strong and the 43 44 news is bullish. Holding tight when everybody is optimistic, then selling $14.58 out of fear when prices have fallen sharply does not get you above-av- Using Sell Signals resulted in average sales worth nearly $1 a bushel more than the erage prices. marketing season average for the 2006 crop and more than $2 better for the 2007

(high, low, and close) $7.26

Sell Signal days during

Selling Season

Average price on Sell

Signal in Selling Season $8.16

We all need a reliable tool to help crop. Increasing prices offered more days of overbought markets than normal. us control our natural human emotions as prices and profits fluctuate.

Relying on an objective tool to tell not suitable for selling grain. Most ducer needs to pay serious attention
us when to make sales will reduce are used for speculative trade. We to the markets or even think about
stress and increase the likelihood have set the parameters of our Slow making a decision. But, you mustn’t
for success. For many years, we have Stochastic to identify the 10 to 12 forget that overheated markets don’t
used successfully a price momen- times per year that prices become last long, and you have to be willing
tum tool called Slow Stochastic. overheated. We call them our Roach to make sales when the news, your
Ag Sell Signals. We think that num- neighbor, and your emotions might
What is the stochastic? ber of sales opportunities per year make you want to buy instead of sell.
In the late 1950s, George C. Lane fits most farmers’ sales needs.
developed the Stochastic Oscillator We have proven that our Sell Front-load March through June
to signal when an upward trending Signal indicator is an excellent digital You have likely kept track of your
stock price was getting near the peak thermometer of market prices. first and last planting days for years.
or near the bottom of its current Farmers watch the graph in our Just as there is a right time to plant,
price move. Here is his theory. In Daily Grain Plan to see when a cold there are also right times of the year
an upward-trending market, prices market is beginning to warm, when to sell, and we have been keeping
tend to close near their highs. In a it gets hot, and when it is overheated, track of those dates for years.
downward-trending market, prices which is the time to pull the trigger. The market believes the greatest
tend to close near their lows. We make sales each day for several crop-production risks occur during
This applies to a daily price chart, days trying to get a good average those critical, early-season produc-
weekly, or a longer period. The for- sales price during the overheated tion months, and prices peak on the
mula he developed shows where to- period. Following this system takes greatest risk. The months that most
day’s close is relative to the high/low away much of the stress of market- frequently have the year’s highest
range over a set number of periods. ing decisions. By planning specific prices are March through June. It
The formula is most often seen as a percentages or bushels to be sold on only makes sense to focus many of
graph with two lines called %K and each Sell Signal, a simple and easy- your sales during those months. We
%D. The range of the graph is from to-follow marketing plan is born. call these months our Selling Season.
0 to 100; numbers approaching 100 Unless prices are overheated, we As you can see from the tables on
indicate an overheated market. refuse to make a sale. This drastically this and the next pages, sales made
There are several ways traders reduces the number of days a pro- following Roach Ag Sell Signals dur-
use Slow Stochastic, but most are ing the Selling Season have worked