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Kevin Van Trump has over 20 years of experience in the grain and livestock industry.
The soybean "technicians" are looking back at prices noticing that they are at the same levels as they were on July11th. Many are also noting that a "key bullish reversal" could be building. As I have mentioned over th past several reports, we are definitely in the midst of a major weather market, but we are also transitioning from a bullish old crop story to a potentially extremely bearish new crop story. That has provided some volitility in the markets where we have seen extreme noves each way as it tries to establish its true direction. The USDA left the bean crop conditions unchanged in yesterdays report despite continued talk dry conditions in many of the key growing areas. Even with the dry conditions, the current soybean crop rating is one of the best ever in this area and should relate to a record crop with the estimated 85 million acres that went in the ground with beans. Will we see an all time record production crop of beans? Most Definitely!! Understand, this is not the best looking soybean crop I have ever seen, especially with some of the issues in key bean areas, but as a whole things look good, with limited fields that are poor to very poor, in the ratings. The other kicker is that with the acres planted we may not need record yields to produce the largest bean crop ever. From a producers perspective, I'm hoping the technicians are right and we rally this market back above the $11.10 area vs. NOV14 so I can make a few more cash sales. CLICK HERE for my daily report...
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