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Grain Hedge

RSS By: Brock Schimbeno, AgWeb.com

Grain Hedge is a self-directed discount brokerage that saves farmers money when trading in the futures and options market. For $7 commissions per side producers can execute their marketing strategy with authority, any time the markets trade.

Storing Soybeans Could Prove Profitable

Oct 06, 2011

Today we wanted to highlight some price action from the November soybean contract. At the time of this post it is trading at 1167 3/4 - down 20.3% since the recent high we printed on August 31st. You can see that this high came on the heels of a sharp move out of the 1300 - 1400 range we were stuck in for a six month period.

We included an RSI indicator on this chart and you can see that after taking 297 cents off this contract since August 31st it has reached oversold territory. With this being said, the soybean market is a very different beast than the corn market coming into harvest as soybean yields have been projected higher and export sales remain sluggish. We are looking for minor support around the 1128 level, but if we continue lower and trade through these levels - look out below.

Right now the cash market is paying producers to store their 2011 crop. For producers that have not yet priced their bushels, being long basis may pay off as we move away from harvest. Give us a call today to talk about marketing strategies as we move through harvest.

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THERE IS A RISK OF LOSS IN TRADING FUTURES AND OPTIONS. FUTURES TRADING IS NOT APPROPRIATE FOR ALL INVESTORS.
PLEASE READ OUR RISK DISCLOSURE.

 
 
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