David Drozd



Farmers should be thinking about selling right now according to David Drozd, President and Senior Market Analyst with Ag-Chieve Corporation.

"We're right at the highs right now. I would suggest that before the market turns down, someone should be maybe making a sale here. It isn't a profit unless you take it home," says Drozd. "There's a strong seasonal tendency for markets to turn down from early January into March."

He says the most bullish news tends to come out at the top of the market.

"There are a lot of headlines out there right now about how commodities are the favourite flavour. When you start reading about that in the Wall Street Journal and the Globe and Mail, it's a heads-up to start looking the other way," he says. "It's very commonplace for us to get caught up in the bullish news and become complacent. Generally when we're in that atmosphere, it's a pretty good opportunity to make a sale of grain and not let these prices get away on you."

Drozd says markets will likely head lower into March, before turning around.

"Generally the correction lasts into March, and that usually comes around by anticipation of the South American crop becoming available or by the funds having to get out of their March futures positions, but once that correction is over, don't get me wrong, we're in a volatile market," he says. "If you have a need to cover feedgrains, get it done then because things are going to head back up on the battle for acres."

Drozd shared his outlook with farmers at St. Jean Farm Days.

Grain and oilseed markets moved lower in four out of five days of trade last week.

~ Monday, January 10, 2011 ~