The CME’s new trading hours have been top of mind for farmers, traders and brokers during the past couple of days. Chris Barron, Top Producer magazine columnist and author of the AgWeb.com blog "Ask a Margins Expert," is confident that the change has profit potential for farmers.
"Expanded trading hours are going to change a lot of things, but I think it’s going to be an opportunity for farmers," he says.
In the video below, Barron gives the example of USDA report day and explains that as long as farmers know their options and input costs and have developed a plan of action with their broker, being able to trade as soon as the report information is available will mean profit potential.
He warns that there might be adjustment pains and that farmers should work with their broker and marketer to ensure they have their bases covered during this time of change.
"It’s going to be a learning experience for all of us, for traders, brokers and farmers," he says. "We’re going to have to take a step back and walk before we run, thinking about how this changes things."