New-Crop Soybeans Post a New High Close!
May 01, 2012
TRADING COMMODITY FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES, KNOWLEDGE AND FINANCIAL RESOURCES.
New Crop Soybeans Post a New High Close!
November soybeans were able to post an 11½¢ gain today despite widespread pressure in grains as well as old-crop beans. The May soybean contract has been experiencing higher than expected deliveries, suggesting that near-term price rationing may not be necessary for now. However, new-crop soybeans have begun to take on a life of their own as concerns over next year's balance sheet continue. Huge corn acreage, as well as a record pace in planting, suggest that we could be looking at very tight ending stocks for the 2012-2013 marketing year.
The record planting pace could dissuade producers from switching many acres back to soybeans, as there is still ample time to plant corn. However, it does seem that price action in the last few weeks may have bought some soybean acres, and producers are looking to double-crop soybeans wherever possible. If the November soybean contract is going to embark on a new leg higher, it could produce another 50¢ to 70¢ upside potential, but it would need to happen in the next few trading days. November beans have tested the $14.00 level four times since the previous high close on April 2, and another failure at $14.00 could bring in massive technical selling. This situation will need to be monitored closely in the next few days.
See November Soybean Daily chart:
This means that speculators should be looking for opportunities and producers need to make sure they lock up prices that makes sense for their bottom line. Give me a call for some ideas. In particular, producers looking to hedge all or a portion of their production may be interested in some of the strategies that I am currently using.
To my mind, there has to be a balance. Neither technical nor fundamental analysis alone is enough to be consistent.
Please give me a call for a trade recommendation, and we can put together a trade strategy tailored to your needs.
Ted Seifried (312) 277-0113 or email@example.com
Please check out my Blog at: http://tedseifriedfutures.com/
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