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Boone Co. Iowa | Frytown, maybe a way to 2nd this opinion?
sx - cz bean to corn ratio, looking at a chart from rjobrien, has plus/minus ratio of corn/bean ratio of corn price, times 2.5, then plus/minus difference in price of beans. Anyway, saying beans closed at a little over $1.80 higher than the 2.5 multiplier of dec. corn. Basically about as high as this has historically gotten. noting dates in Oct of 2003, August of 2009 when they were almost as high as they are currently. I was just thinking that this might be a time/place to short sx and go long cz. But, maybe crop conditions say otherwise.
My only point is that the price differential is at an all time high. Obviously due to the crops that are out there (or in the case of beans not out there). And, I'm only looking at 2013 prices.
Most farmers in my local area bin corn and store beans at elevator. I am thinking that I could get decent premium via basis hauling beans a few extra miles, esp. since seems basis moves a lot when someone really needs them. Just thinking about things in general, as prices are not in their normal corn/bean ratio.
ps so WHY do you think the beginning of a sucker rally is forming? | |
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Going to go out on a limb... corn, soy
