FAIRBURY – The grain marketing business is a little different these days as traders and farmers pay less attention to actual numbers and more attention the emotions behind it all.
Rich Morrison, a senior risk analyst with Diversified Services Marketing Group, is watching Twitter and social media news feeds out of Washington to see what the president had to say overnight. What is said often moves the markets one way or another.
“We are getting a lot of investment dollars coming in and out of the market based on what gets said and based on what we think is going to happen,” Morrison said during a meeting in Fairbury this week hosted by Diamond Brothers insurance.
Morrison believes soybean prices are decent currently and admits he did not see this rally coming.
“It feels like a buy the rumor, sell the fact type of market where the trade is building a premium into the market anticipating we are going to get some business done.”
Producers with soybeans left to market are being encouraged to take advantage of the current situation. Corn prices can’t seem to get out of a 20-cent window and there is an ample supply.
This means there is really no reason for the corn market to move much, according to Morrison.
The parent company for Diversified Services is Consolidated Grain and Barge. The company’s risk management division began 20 years ago and sells crop insurance and offers marketing services. Several independent insurance agents work with the company.
“We work with producers on risk management and try to help them not only buy a policy to protect bushels but then do something with those bushels,” Morrison explained.
To reach the Diversified Services brokerage office in St. Charles, Illinois, call 888-926-0985.