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NW Indiana | I would contend the market is saying supply is ample, rationing would take place if SA crop comes up short and then the market would ration the front end of that. Currently virtually no one is going to start placing wagers that SA comes up short as this would be like our March and that is why we see today's price. Wagers will likely start getting placed as we enter their critical time and that could go both ways, seasonals 101. I would say in general not near enough people have wrapped their mind around the powerhouse SA has become in ag and often just think of US supplies. SA is quickly approaching producing double the amount of soybeans, Dec-Feb has a whole new meaning to the market then it did just 10 years ago. | |
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5 reasons why price continues to erode from here
