Subscribe to receive top agriculture news
Be informed daily with these free e-newsletters
June 2, 2016
Selling rallies isn’t easy. That’s why traders keep searching for a system to ensure profits.
Many turn to price charts for clues – so called technical analysis, which uses futures price patterns to guide buying and selling decisions. We looked at six of these signals, tracking how they performed against the harvest December futures price. Also included in this analysis are sales made after improvements in weekly ratings put out Monday’s in the Crop Progress report from USDA.
These are all hypothetical results, not the gains or losses from actual trades. Some academic experts believe it’s impossible to “time” the markets. They say any gains from such systems are the mere result of chance. Our study found gains too small for some of the systems to be statistically significant. And all of the signals some years netted prices that were much smaller than the harvest price.
This video explains the signals, which can help you understand why markets are moving – and perhaps, when to consider making sales. We also provided year-by-year results to show how the plans worked, or didn’t.
You May Also Like
Current Conditions for
Enter a zip code to see the weather conditions for a different location.
EPA policy and proposals: Draft Herbicide Strategy will impact all U.S. farmersFeb 21, 2024
How to transition farm machinery and equipmentFeb 22, 2024
EPA approves summer E15 sales in 8 midwestern statesFeb 23, 2024