Markets - General
The “free” storage being advertised by grain buyers can also be called price later opportunities, delayed pricing or DP.
It all comes down to what fundamental changes mean to the stocks-to-use ratios.
China came in with some purchases of soybeans and corn this week, and as rumors of more buys from China continue in the markets, analysts point out some of China’s big ag buys from last year still haven’t shipped.
For the third week of January, the grain markets featured some explosive prices.
It might be prudent to understand various call option strategies that provide upside gain potential should the U.S. drought continue, soaring prices do indeed cause farmers to use less fertilizer or yields are low.
The price outlooks for corn and soybeans are initially about as different as a drought and a flood.
I am keeping an eye on China’s soybean crushing pace. It might be slowing, which could lead to weaker soybean imports and weaker prices.
Despite many challenges in 2021, U.S. corn and soybean yields topped those of 2020.