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What does this system tell me?

The SoyTech system alerts us with "sell" and "buy" signals within the high and low areas of the soybean market contracts.  When we receive these signals, we immediately post the information on-line with a few comments. (We also correspond personally with those who request it.)

Who is this system for?

Soybean producers and sellers.  Buyers of soy and meal for process.  Livestock producers for feed use.  Seed dealers.  Brokers. Also for Speculators.

How can this system be used?

As an assistance to those who want to. . .

1. Sell cash soybeans at the higher points of the market.

2. Buy feed at the lower points of the market.

3. Have their own source of technical information for option strategies.

4. Use the technicals for long or short future positions on the CBOT.

Also this system can be used by seed dealers who must lock in a price for their soybean "sale orders" with their seed company.

Why should I take your advice?

Our profession is farming. We know what it is to put in a crop and take it out. That’s the easier part. As you know, it’s the marketing of the crop that makes all the difference. That’s why we’ve put so many years and effort into developing this system. It’s made all the difference in our own bottom-line. We think you’ll find that the SoyTech system can help you to be a more effective & profitable grain marketer too. Are we always right? Of course not - - no one is. But our track record speaks for itself. This system consistently picks high & low points in the market. If you have to make sales sooner or later throughout the year (and we all do), then this information can be invaluable most of the time.  Any use of the information is entirely up to you. It is intended to be a private and timely source of technical information for your own personal, educational, or informational use, and of course to be used at your own risk. (see the disclaimer for details)

High and low areas continually take place in all contracts of the soybean market. In any given time of the year you may realize you need to lock in a future sale or perhaps make a sale of your existing inventory. In either case you can look to the next available high cycle of the SoyTech system for indicators to "pull the trigger" on sales.

How does it work?

Basically, how it works is that it takes the daily statistics (open-high-low-close) of the soybean contract, runs it through a series of formulas creating what is called “stochastics.” It then alerts us to the best “selling” or “buying” points of the market which is based on the consistencies in historical contract data. It also counts high & low cycles in any given contract. We primarily use July and November contracts because they usually reflect the most moving action of the market (however, we can report on any contract by special request). The system tells us when to watch for a “buy” or “sell” within those cycle counts. It is a technical analysis.

What is the difference between Technicals & Fundamentals?

Fundamentals - - are factors of supply & demand which are effected by the weather, the health of foreign and domestic economics, crop reports, etc… The key to fundamental analysis is to gather and interpret this type of information and then to take action before this information is incorporated into the futures price. The lag time between an event and its resulting market response presents a trading opportunity for the fundamentalist.

Technicals - - This approach is based on the premise that price movements follow consistent historical patterns. Those who engage in technical analysis study charts or statistics that measure price movements and try to find repetitive patterns. The up-trend, downtrend and sideways trend patterns experienced in the past can alert a chartist to such a movement forming in the current market.

So which is better? Technicals or Fundamentals?

We believe that Technical Analysis is the best because the fundamentals have so many variables. How will a rain in one part of the world or a drought in another effect the markets today? The fundamental factors create such a volatile playing-field in the commodity market. But one thing that always proves out is that no matter how much the fundamental factors can swing the markets, they will always come back in line with the technicals. History has always proven it.

As a farmer, what should be my first step to be a better marketer?

By making a plan! It’s the best offensive method we have in developing the discipline to pull the trigger when it’s time to make sales.

Where can I find a sales plan for my crop?

Everyone’s plan is going to be a little different from everyone else’s. We have a detailed plan of selling in percentages as well as a couple different “sales plan” forms that you can print out to keep track of cash sales, hedging positions, and remaining inventories. We also have a work sheet for projecting and keeping track of soybean acre expenses. These forms can be used for figuring cost per acre and cost per bushel. It will give you a base-line to work from in making sound marketing decisions. You will feel good just having a plan of action. And these forms are a good place to get started. Click on “Soybean Sales Plan” and take a look.

Can your service help me with my hedging or speculating?

Certainly any information of the cycles of the market can be a valuable help in a hedging plan as well as to the speculator. The success of hedging or speculating is definitely all in the timing of placing positions.

Your signals are given in contracts that are months away from now. How can I use these signals in the current month?

Even though it is in a far out month, the subscriber can use each occurring signal by making near-by or advanced-month sales of inventories/expected yields, buy livestock feed, take positions on the C.B.O.T., or use the options.

Why do the SoyTech signals not come as frequently as some other services do?

While some services offer frequent short-term signals, ours is more long-term. This service is primarily for farmers with actual product to market. SoyTech's longer-term signals work well with the "percentage sales" of soybean inventories held by farmers throughout the marketing year. It was developed to filter out the shorter, more volatile moves in the market. Therefore, fewer, and more accurate sales and hedging opportunities are the resulted goal for the farmer. This also makes SoyTech a good choice for the more "conservative" speculator. Speculators usually like to make more trades throughout any given contract, therefore we can give them signals outside the low & high cycles as well as within (although the accuracy is often diminished outside cycle counts). Obviously, the speculator has more risk involved.

What if I want a “full service” account?

While we do not serve as brokers, we can however suggest a trusted and capable broker to you who would contact you if you request it. We would supply him with our information and he would guide you on how to use it. You must realize, however, the risk is entirely yours. And there is always risk in the commodity market. Speculating should always be done with risk capitol.

Do you always hit the top in the market?

Absolutely not! And don’t believe anyone who says they can! Our system does however have some impressive histories. It has hit the highs and it has hit the lows. But more importantly, it is quite consistent in throwing us a “sell” signal in each high cycle of the market and a “buy” signal in each low cycle. But we’re not about to tell you that it can pick the one high point in the year, sell your crop there, and you're done. As you know, grain marketing just doesn't work that way. The bottom line is, all of us have to sell our crop sooner or later in good times or bad. When the time comes when you must make sales, wouldn’t you rather make those sales within the high cycles of the market rather than outside of them? Our main objective is to recognize those times and relay that information to you in a timely matter.

Is my name and personal information kept confidential?

Be assured, any information you submit to us will be kept in strict confidence. It will never be given or shown to anyone else unless you request us to do so.

Summary. . .

With the SoyTech system - - We have devised a way of using a group of stochastics which we derived from the daily market quotes and developed a most precise time to make “sells” and “buys.” Then to improve the odds, we coupled these signals with the high & low cycles of the market. In selling cash grain, we use only those signals which occur during a high cycle count. It could be said that it is just as important to know when not to sell as when to make a sale. That’s why cycle analysis of the market is so important to give us a precise window of opportunity to make that sale. We are not forecasting prices. We are letting our formula system tell us the best time to make sales when the market seems to top out in the high cycles and the best times to make buys when the market seems to bottom out in the low cycles. This is a Technical Analysis. We will leave the attempts of price forecasting to the fundamentalists.

 

 


More questions?
If there are any questions that you might have about the SoyTech System that you don't see listed here, let us know and we'll try to answer them. . .






 
 
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