Stock Markets Plummet, Where’s Ag?

Wall Street posted its worst day since the 2008 financial crisis on Monday as the nation and world watched the Dow Jones Industrial Average drop below 11,000 for the first time since November 2010.  Monday’s over 600 point drop added to decreases that have taken place over the past two weeks.  In those two weeks, U.S. stocks have fallen 15{e7e4ba4d9a3c939171d79cae1e3a0df1d41e5a91c3c4158fbb92284b490bc9d3}.

Where does agriculture fit in?

Henry Kornegay of Jackson Commodities spoke with Northern Ag Network on Monday.

He told us the sharp downturn has pushed many traders to the sidelines.

Henry added that professional traders look at these lower prices as an opportunity.

Using the cattle markets as an example, he said that it could present an opportunity for the professional traders to buy in.

So what does the producer need to pay attention to as they are blasted with negative headlines about the stock markets?

And while producers may not think of themselves as professional traders, Henry says that this could be a good time to take advantage of the lower prices.  This could include buying feed grains at a lesser price or taking advantage of a tightening basis at your local elevator.

For more information on Henry and Jackson Commodities, visit their website.  The stock market information above represents the close of daily trade on Monday.

©  Northern Ag Network 2011

Haylie Shipp