How Long Does the Soybean Rally Last?
Nov 12, 2013
Soybeans remain mixed. Talk is much the same in the fact that nearby prices could push higher on the heels of strong demand and very tight global supply.
However, moving forward, talk of 90.0 mmts plus coming out of Brazil and perhaps over 55.0 mmts out of Argentina makes the balance sheets look much more burdensome. In fact many bears are starting to think soybean prices could eventually end up with $9 in front of them. I certainly understand the downside risk associated with prices, but I also want to make sure everyone knows the crops are not grown inside a bubble. With supply still extremely tight and global demand not looking as if it is slowing down, any type of hiccup in weather will make the trade extremely nervous. With this in mind I continue to patiently wait for higher prices in 2014 & 2015 before pricing any additional bushels. Those producers who have little to no bushels sold should continue to use the current rallies to get yourselves caught up.
Our latest cash sales target was hit last night in the overnight market. We still have another 25% of our 2013 soybean production to move and have cash sale targets resting in the market. We are actually working on reducing more risk in 2014 and 2015 at profitable levels... Strategies you don't want to miss out on!
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