|
Mascoutah, Illinois | My personal topside is November beans to $15.04 where I would be an aggressive seller. The market usually peaks somewhere in the September 5-10th range the last couple of years. However in 2010, the market kept going and going all the way into 2011. It appears beans are moving around a 3 to 1 ratio on December corn. Using this formula, corn should have anywhere from 55-60 cents minimum to the upside. Our forecast here shows the hottest day of the year on Wednesday of this week with the pattern holding through Labor Day (meaning plenty of heat and little if any chance of rain). I hope we all know if the forecast changes, we are going to come down pretty hard. The question to ask yourself is do you store beans if they get to $15.00 or what percentage do you unload? Everyone's situation is different and you always do what you feel is right for your operation.
EDIT: December corn closed on Friday at $4.70 which should equate to at least $5.25 if November beans make my $15.04 target.
I guess I should tell you how I get to $15.04. We fell from $13.33 to an $11.62 low before the rally. Using $13.33 as the midpoint of the move, $15.04 becomes my topside target.
Edited by djmcountryboy 8/25/2013 22:00
| |
|
Weather rally or not....
