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SoyTech.com |
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Examples |
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The following are a couple of examples of how the SoyTech system can be used: First Example. . . If a farmer is ready to sell a portion of his crop, he/she can log on to SoyTech to first see if the contract is in a "low" or "high" cycle. Obviously, if the system reveals a "low" cycle, the farmer will want to wait until a "high" cycle develops. Note the red lines/areas of the following example. They represent a possible time frame in which the farmer considers selling. Let's say that SoyTech recognizes that a certain inquiry is made during a "low" cycle. It would therefore be recommended to the farmer to wait for the next "high" cycle (indicated by the red lines/areas) to make his desired sale. When the high cycle begins, the farmer waits while the SoyTech system detects a "sell" signal by the indicators that usually fall into place. When a
signal develops (noted by the red dots), the farmer might choose to make the sale. Since
there are several different types of signals, we will often try to read whether
the indicators are telling us to
make a small sale or a large one. Current
fundamental factors will also play a part in the percentage of bushels sold
- for example, a summer weather rally would be a good time to clean-up the last 10%
of stored grain. It would also be a good place to begin the sales of the next
year's crop.
Second Example. . . Let's say a seed dealer who must price his own seed purchases has a deadline to get his seed inventory locked in with the seed company. His timing of price action can make a huge difference in what he makes when the seed is sold to his customers. He/she can log on to SoyTech to first see if the contract is in a "low" or "high" cycle. When the first available "low" cycle falls into his time frame, he can choose then to price his seed orders. Or better yet, he can wait for the first "buy" signal that develops. The same table above, can show (by the blue areas and green dots) how much better he might do in his pricing.
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