Beans Searching for More Demand
Nov 09, 2012
From The Editor
November 9, 2012
Hello Pro Farmer Members!
What a crazy end to the week! Beans got a U.S. crop estimate that was a bit bigger than expected, rains started to fall more consistently in Mato Grosso, Brazil, and conditions have turned a bit drier in the waterlogged bean fields of Parana, Rio Grande do Sul and Argentina. The result made it look like a bomb went off in the bean market today. The result was the lowest close in January soybean futures since July 2... just ahead of the hard rally into the heat of the summer.
The new for-the-move low in the bean market certainly suggests the market still has some work to do to find a "harvest low." One or two big bean sales to China would undoubtedly make a difference, and that's something that can't be ruled out after a week that saw prices fall about $1.20 since Nov. 1.
Time to get back into the flow of the newsletter...
I've been working on a special project for the last few weeks (more details later) and Sr. Analyst Brian Grete and On-line Editor Julianne Johnston have been handling the newsletter. They've done a great job, but I'll get back in the saddle through the end of the year. The good news is I miss writing the newsletter... that means it's something I still want to do every week! Pro Farmer Associate Editor Meghan Pedersen and Inputs Monitor Reporter Davis Michaelsen also get some kudos for picking up some of Brian's and Juli's daily duties to keep the process moving around here, as well.
I've been listening to comments from both political parties all day about the fiscal cliff. You want to talk about "hedging!?!" These guys are adding and subtracting words from their established stances that make me think they might actually try to sit down and work things out. The Republicans' consistent line was they didn't want to talk about increasing federal revenue and that spending cuts should be used to reduce deficit spending. Now they're talking about not raising "tax rates" on wealthy Americans. It's a subtle change.
The Democrats aren't any better. President Obama campaigned on the idea that he would veto a budget that didn't include a higher taxes on the wealthy... but today he's says he isn't "married" to anything in his budget-cutting proposals and that he's willing to listen to any and all ideas.
It all gives the impression that both sides may now be more willing to negotiate... which would probably be a good thing. But I don't trust them... they'll build up confidence among the American people and businesses heading into the lame-duck session of Congress, but I'll be surprised if they actually get anything constructive done.
I hate to end on such a pessimistic tone, but...
That's it for now...
Have a great weekend!
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