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Buxton ND | Here's something I post 2-3 week on another site.
The huge spec money drove soybeans to UN-heard of prices as the SA producer was making crop plans as the REAL really favors SA. Demand is the name of game right now after the USDA report this week. That demand HAS BEEN CHINA in beans they have bought a chit pile of beans ABOVE our current prices.............The FUND MONEY has been CLEARLY RISK OFF,now think of this whats gonna happen down the road IF SA has a good crop, REAL/dollar stays steady or dollar trades higher making those SA beans CHEAPER ? IF AND or WHEN China canceled beans,big commercials UN-cover those sales (selling) if the FUNDS are UN-willing or UN-able to take the long side of those commercial trades things could get REALLY NASTY and when things get nasty margin call selling kicks in makes things worse...This has happened a few times over the years...
SA weather seems be the news as of late other then the words "risk off" IMO SA acreage will be HUGEEE. over the years the the more acres planting the bigger a weather event has to be to really affect bottom line production..... | |
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Soybeans
