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The Conference Room

Commodities Trader: Don’t Follow the Headlines

By Gabrielle Karol The Conference Room FOXBusiness

Commodities trader says don't follow the headlines

Jim McCormick, Allendale, Inc. senior trading advisor, on why it's important to look at the big picture when trading commodities like corn.

There’s a time and a place to look at the big picture – and also to get into the weeds.

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That’s the lesson from Allendale, Inc. senior trading advisor Jim McCormick. In a Conference Room interview with FBN’s Jeff Flock in a corn field in Illinois, McCormick says it’s important to do your own research and not get distracted by headlines.

“A lot of guys they call it trading out their back-door window. They look at one area, or the one little headline, and they get caught up in it,” says McCormick. “Right now a lot of guys are getting caught up in the flooding right now in Minnesota … But if you look right here in Northern Illinois, we have the potential of a record crop.”

And even on a field-by-field basis, McCormick says it’s essential to be thorough when evaluating the facts.

“You’re looking at probably 1% or 2% of the acreage is bad in this field, but most it looks incredible, plain and simple,” says McCormick.

Flock says there are takeaways for traders and business owners, too.

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“Look a little more granularly, and if you need to, dig down deep -- that’s where the real information is,” says Flock.

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