Pay Attention to Tight Markets

November 15, 2015 02:32 PM
Pay Attention to Tight Markets

The commodity markets have been tight for the past few months. Tight markets can present opportunity if producers pay enough attention.

“We’ve been in about 20-25 cent trading range,” Don Rose of US Commodities told “AgDay” host Clinton Griffiths. “We’ve been that way since early summer, mid-august.”

Little market movement can present a challenge to producers who want to make money trading grains. Rose says farmers need to pay extra attention to technical indicators.

“When you get oversold and you’re on a big break in the market, realize that they’re probably not going to move out of that range unless there’s something new,” he says. “Make sure you don’t market at the bottom.”

He says the same goes for capturing the top end of the market.

“When you see rallies and you get close to the top end of these ranges and you get a little bit over bought make sure you have some indicators that give you that,” he says.  “Then go to work and open up the selling attitude a little bit.”

Rose says farmers need pay attention to the type of market they are currently in. Is it a bear market with a lot of downside or a bear market that is discounted?

“So far we’re in a supply and demand bear market that has an awful lot of it already discounted,” he says.

Watch the full interview with Pete Rose in this clip of “AgDay”:



Back to news



Spell Check

No comments have been posted to this News Article

Corn College TV Education Series


Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!


Market Data provided by
Brought to you by Beyer