Soybean prices bounced up this week, almost hitting $15. Jerry Gulke explains what is behind the rally.
Soybean prices ended lower on Friday, but for the last few weeks have been on an upward trend. See the January 2013 soybean chart:
"Beans had a rally, but it just couldn’t get above trendline," says Jerry Gulke, president of the Gulke Group. "There was some overhead resistance at $15, but we got to $14.98."
He says the market is waiting for new information, which will likely come in Tuesday’s Crop Production and World Agricultural Supply and Demand Estimates.
Will the soybean crop be increased again? Gulke says the odds are likely. The big question will be where in the balance sheet they put this increase in production.
"In the past, we have found new beans, but didn’t increase carryover because we dumped it back into exports or crush. When can you quit increasing exports and actually put it in ending stocks?"
Listen to Gulke's full audio analysis:
See full coverage of the Dec. 11 Crop Production and World Agricultural Supply and Demand Estimates reports on AgWeb.com, following the report releases at 7:30 a.m. (CDT).
For More Information
Is the Low in for Soybeans? Read Ted Siefried's The Ted Spread blog to find out.
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