2011 was a difficult year for marketing grain. The U.S. experienced a very difficult growing season. Farmers went to the field armed with the latest technology targeting record yields. Although winter wheat yields reached their historical trend line, spring wheat, corn and soybean yields fell well below expectations and historical trends.
The withering crops came at the same time the U.S. Dollar was challenging its historically cheap 2008 lows. Precious metals were posting crazy record price peaks and all commodities were in a sort of speculative fever.
Sales made early in 2011 or even worse 2010 were made to look foolish. The corn market was especially difficult because prices moved all the way to a new record high. For anybody helping farmers sell their crops, 2011 was a challenge.
Sell Signal Statistics – Total Number, Total Days, Average Duration
There were more Sell Signals than normal during the last crop year for corn, wheat and beans. If you click on the chart above you can see the number, average duration and total days of Sell Signals for each of the markets we cover.
Corn had 10 Sell Signals during the September to August crop year lasting an average of 13 days each. That’s lots more days than normal but is what happens when prices move to record levels.
Soybeans had 10 Sell Signals during the crop year lasting an average of 9 days each. Having 90 days of Sell Signals is more than normal but not nearly as unusual as we saw in corn.
Chicago wheat had 9 Sell Signals during its 2010-11 crop year lasting an average of just under 7 days each. Having 60 days of Sell Signals in a crop year is very normal.