Soybean markets are seeing life on Friday, jumping more than 13 cents. The reason behind the move may be unclear, but analysts on U.S. Farm Report this weekend like the signals the soybean market are sending.
“The market has dealt with a lot of bad news recently,” said Brian Splitt of Allendale. “We've had bean yields increasing two reports in a row, and yet, we haven't been able to take out August lows much less the June lows that were made prior to summer.”
The same is the case in corn, where he says prices are holding the lows, with new buying interesting coming in.
“I don't think we want to get too down on ourselves right now,” he said.
Splitt says if a producer is concerned about downside risk, he thinks it’s wise to look at options.
“Volatility is low, which means options aren't cheap,” he said.
Tommy Grisafi of Advance Trading, Inc. is watching similar signals from the market, but the reports he’s getting from the field that are mixed. He says solely relying on reports from social media sites, like Facebook and Twitter, can created a flawed outlook on the market.
“One of the biggest mistakes we see in marketing bushels is it's hard for us to do our job when we can't get the facts right from the customer,” said Grisafi. “Sometimes there's a lot of free news on the internet, and sometimes free is just too expensive.”
Watch both analysts as they break down the markets on U.S. Farm Report.