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| Beans (futures) have come down to $8.16 twice and paused. What's significant about $8.16? It would seem to me that given the Brazilians have more or less sold the beans they're going to sell, the US market should control the price. I can understand the basis along the river moving up (getting more negative), but shouldn't the futures follow it down and let the basis narrow again? If the elevators can buy beans at $7.50 in Illinois (-.70 basis) shouldn't the futures follow the price down simply because Illinois is where the beans will be delivered.?
Is there some options that need to expired before the futures price can adjust?
Edit, I should have specified bean futures above. Yes, cash beans are much lower at locations but with the 70 cent basis showing for Ill, locations, that translates into $7.50 cash beans in Ill. Should the price of futures approach the price of beans in Ill.?
Edited by farmer4321 8/30/2018 21:13
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Question..$8.16 beans.
