Volatility Slows Down Sales Momentum

July 26, 2011 08:14 PM

The violent price swings that we have seen in the market during the past several months have largely led to a halt in cash sales among the advisory services. Trying to outguess the government numbers has been a futile effort, forcing many of the advisory  services to react to the data rather than take a large position prior to the release of a report.

Overall, the advisers in the Archer Financial Ag Hedge Program are sold out of 2010 inventory and
on average stand at 50% sold for the 2011 corn and soybean crops as of July 1. The market’s wild fluctuations have seemed to reward the advisers who have a plan in place to systematically reward strength in the market rather than wait for price breaks in order to initiate their hedge strategies.

There are two advisory services that are 100% sold in the futures markets for their 2011 corn and soybean crops. As of July 1, more than half of advisory services have made some 2012 crop sales and one advisory service, Progressive Ag Marketing, has hedges in place for the 2013 crop.

"Anytime corn is over $6, you can’t go wrong making sales," says Ray Grabanski, president and senior market analyst of Progressive Ag Marketing. "When a farmer can make a profit margin of 25% to 30% producing a commodity, it won’t last long. Since corn is over $6 for 2011, 2012 and 2013, all of those are good sale opportunities and farmers should be progressively sold."

adviser index

If you have any questions or comments regarding the track record information, contact Mark Soderberg, Tim Smith or Scott Harms of Archer Financial Services, Inc., at (800) 933-3996.

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