This blog is the third instalment in a series on technical analysis/charting tools used to predict potential change in market trend. The purpose of these series of blog articles is to give our readers a more in depth background on a variety of technical analysis tools that can be used as a reference point for readers unfamiliar with charting.
It’s not often headers are out in south western Victoria in November, but just yesterday a grower started harvesting Canola next door. As with many growers, it’s decision time in terms of marketing. In terms of Canola, the $20 fall in price in the last fortnight has made the initial plan to simply sell Canola at harvest now a little less palatable.
Wheat prices have also eased as we moved into harvest, with wheat values falling on the back of lower international markets. These falls in price present a conundrum for the growers who need cash, but don’t like the price.
Does that sound familiar?
“I won’t use swaps because if the market goes up I will lose”
“I have heard of a wheat farmer who lost his farm as a result of taking a Grain Swap”
“The bank always wins; they know more about the market than we do”
“With swaps, someone always wins and someone always loses”
These are just some of the statements we have heard from farmers when the issue of swaps is raised.