Twitter is aiding farmers in making marketing decisions, but it is also transforming the way brokers trade commodities.
While the social media site hasn’t made trading easier, it does help the decision process because there is more information available, according to Bill Montgomery of Montgomery Trading Company, @BL121CBOT on Twitter.
Tom Grisafi of Indiana Grain Company, @Indianagrainco on Twitter, has embraced it in his trading alluding that for him, it is even beginning to replace Bloomberg.
"I haven’t had Bloomberg in nine months, I get the information just as fast on Twitter," Grisafi says.
Bloomberg too has embraced the trend using the handle @bloombergnow to reach market analysts on Twitter. Montgomery agrees that Twitter is one of the best sources for market information because of its real-time nature.
"It’s a great conduit to be able to see what other people’s opinions are instantaneously," Montgomery says.
The information traders get from Twitter is straight from the floor and raw, that is what Grisafi likes most about it.
"It’s not like what you get from the people at Bloomberg who write stories and have to have them approved by their boss before we can get them," Grisafi says. "Compared to Twitter that stuff is old news."
Most traders, including Montgomery, don’t base decisions entirely on Twitter information.
"I’ll initially take it with a grain of salt and I’ll take it out of my mind and then I’ll take a collective consensus about it before I use it to base a decision," he says.
Montgomery is realizing the power of this information source as a global perspective. While he doesn’t think you can believe everything you hear, because anyone can us the platform he finds it’s fairly easy to notice when something is worth paying attention to.
"Take the Japanese situation for example, that happened during regular marketing hours and all of the sudden we started seeing more people talk about it and we realized ‘Hey this might be a really big deal,’" he says.
Founded in 2006, Twitter wasn’t expected to last long. However, at the age of five, Twitter has found a place in the business world and Montgomery thinks that it will last.
"I thought long and hard before I signed up for the service because of the fear that it wouldn’t last, but now is certain that Twitter is here to stay," Montgomery says.
Montgomery isn’t the only person in the trading industry that thinks Twitter is useful, according to him the number of people Tweeting on the floor is growing every day. Even traditional market sources like Bloomberg and CME are Tweeting these days.
"It’s a useful tool, it’s one more information source that you can have and for that reason alone, it’s worth it," he says.
What kind of things do they say?
@FuturesOptions : Grains trade mixed and off earlier highs...CK +36 1/4, beans (17 1/2), wheat (11). #grains #corn
@SilpkaTrading: Grains trade mixed and off earlier highs...CK +36 1/4, beans (17 1/2), wheat (11). #grains #corn
@IndianaGrainCo: #grains are open and moving #corn up 35 cents limit is 45 $$
@Bill141CBOT: Friday Trading Floor: Corn: The selling in July is pressuring the May, so the hold at Limit is jittery at best. $$