When a market analyst tells you to “reward the market” by selling in to a rally, what does that actually mean? Is 20 cents enough? What about 50 or 60? Does it depend on the crop?
The exact number of upward movement is probably different for everyone, says Tyler Schau, market analyst with AgMarket.net, but the important thing is to use whatever definition you choose as a trigger and stay disciplined with it.
For Schau, he’s got his own set of how many cents to the upside makes a “rally” for corn, beans, and wheat, but the exact numbers might look a little different here in Canada for canola, for example.
When talking the current market considerations, Schau says that farmers in his area are perhaps a little nervous to forward price much for 2025, as a big chunk of the growing region for North Dakota is dry heading in to winter with shades of fall 2020 sitting in farmers’ minds. 2021 was a devastating drought year for Western Canada and the U.S. Northern Plains, and the marketing nightmare that was 2021 is still a pretty fresh memory, he says.
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