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Central Illinois | I believe we make a move higher. My reasoning: retracement levels, basis levels, and farmers are not selling. Basis levels in the export market have improved tremendously since Friday. Tells me someone is buying corn and beans. E- Plants still making decent money and are screaming for corn.
We bounced off the 38.2% retracement level of 6.32 yesterday and now seek the 6.75-6.80 level (50% retracement). Ultimate goal is the 61.8% retrace at 6.99 Dec futures.
I have talked to many local buyers the past week and they are not buying much of anything. Farmers seem to be well heeled into the end of the year and are sitting tight waiting for $7 and $13. I want those levels also but will let some go before them.
As far as the acres...NH3 is going on fast here in IL. And on alot of corn stalks. With the cash rent moving higher this area will plant corn on corn on corn as long as weather is applicable in the spring. The price ratios of corn to beans will dictate acres but the most important factor is spring weather. We are due for a good spring as the U.S. has not had a good spring planting season since 2007. Who knows what the weather will be next spring as only the man upstairs has an idea. | |
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