Soybeans Picking Up Ground
Feb 24, 2012
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.
If you want to chart this ratio yourself, take a demo of Firetip today!
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