Jul 28, 2014
Home| Tools| Blogs| Discussions| Sign UpLogin


Current Marketing Thoughts

RSS By: Kevin Van Trump, AgWeb.com

Kevin Van Trump has over 20 years of experience in the grain and livestock industry.

As with all markets, "fundamentals" will eventually win out!!

Apr 02, 2013

 "FUNDAMENTALLY" we should NOT be trading at these levels, BUT WE ARE!!!  As with all markets, "fundamentals" will eventually win out... but "WHEN" is the question??? Conventional wisdom and fundamental reasoning have cost many investors millions as they have been trying to short the US Stock and Bond markets the past several years. With the monetary base per dollar of nominal GDP at record highs, and the federal deficit as a percentage of GDP trading at extremes... "FUNDAMENTALLY" we should NOT be trading at these levels, BUT WE ARE!!!  Similarly in the Ag markets, "money-flow" is responding much differently now than in years past. Traditional supply and demand wisdom doesn't always win out immediately and the markets interpretation doesn't always make sense. Point is, be careful beating on what appears to be a "sure thing." Yes, the recent USDA numbers will make it harder for prices on the board to rally, but lack of "REAL" supply may ultimately tell a different story. Remember, as producers we are trying to be the best "Risk Managers" we can be. Leave predicting overall market direction to those who prefer to gamble. Continue mitigating risk and you will have a successful operation!

 

For the rest of the story including more insight into what traders believe are influencing market prices currently, sign-up here to receive a RISK-FREE 30-Day trial of my daily Grain and Livestock commentary. So many advisors want to tell you exactly how to market your crop, I want to teach you to better understand the markets and how you should respond.  If you are looking to be educated and not just told what to do, simply click here and get started!

Van Trump Report

 

 


Log In or Sign Up to comment

COMMENTS

No comments have been posted, be the first one to comment.

Receive the latest news, information and commentary customized for you. Sign up to receive Top Producer's eNewsletter today!

 
 
 
 
The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by AmericanEagle.com|Site Map|Privacy Policy|Terms & Conditions