Creating a Bullish Story for Beans?
May 14, 2013
Soybean traders are considering the fact the top US production states of Iowa and Illinois have less than 1% planted, where generally they are approaching 20-30% by this time frame. The cash market continues to remain extremely strong, with the basis in many areas well over +$1.10 as crushers continue having a tough time sourcing new supplies. Traders will be keeping their eye on the upcoming NOPA Crush numbers which will also help give the trade a better idea about available old-crop soy supplies. Reducing a little more new-crop soybean risk on the rallies continues to be a primary objective. I am still keeping my eye on the $12.25 area as a place to possibly make another round of new-crop cash soybean sales or an area to reduce more risk. With everyone focused on getting corn in the ground, do we create a bullish story for soybeans?