After our last article on grain reports, some of you may still not be convinced of the small value we think they have for farmers. In honor of those folks, we decided...not to do very much work. Instead, we'll look at some charts and discuss some theory. The simple rule we think farmers should abide by regarding grain reports is NOT TO TRADE during or immediately after their release. More about why and when you should trade below.
Who are grain reports important to? Everyone! Reports are necessary for the most accurate price discovery. For folks directly effected by the import/export market, reports are great tools to forecast sales or provide insights whether to expand a facility sooner rather than later. However, for the common speculator or farmer, the upside is not so obvious. This article looks at whether trading futures before, during, or shortly after (2 minutes) big grain reports is a good idea.