The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
Grain TV is a daily recap after the market close, providing opinions on fundamental analysis of market direction, influences and expectations. This daily program is produced by Grain Hedge, a discount brokerage firm that provides farmers and elevators with agricultural intelligence including live market quotes, cash bid data, the Grain Hedge Optimizer™ and mobile trading platforms, all for $7 commission per side. Grain Hedge provides tools to allow farmers the ability to trade when the markets move without having to wait for a broker and the information to execute a marketing strategy with confidence.
The export sales report this morning confirmed recent strength in the soybean market, with 1,159,400 MT of soybeans reported for Feb 10-16. The Chinese were a large purchaser of old crop soybeans, purchasing 521,100 MT during a visit by Vice President Xi Jinping to Iowa.
At the time of this post we see DEC 12 corn down 7 while NOV 12 beans are up 1 cent. In recent weeks the ratio between these contracts has exploded, with new crop soybeans now trading at 2.3 times that of new crop corn. The trade is looking at 2.4 as an area where soybeans will be very competitive for many farmers to plant, especially those facing corn-on-corn decisions.
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