Beans in the teens

[Pa(b)st Prime]

Corn has been a prime beneficiary (along with Sugar) from proposed ethanol production. Thus farmers have been more enthusiastic about planting C than S.

HOWEVER: Crops MUST be rotated every other year or less the soil suffers. Severely. Hence many farmers will be back in beans next year. That's why beans are lagging.

 

[katesdp]

Squirrels accurately predict bumper harvests


http://www.wnd.com/redir/r.asp?http...rrels-accurately-predict-bumper-harvests.html

 

[Jaime]

I'm new to this, but doesn't the daily bar chart look a little bearish right now for the beans?

 

[SethArb]

wow ... some move today in the beans !

wish I was long ...

 

[pkts]

I was amazed that no one had posted here. Amazing day! I imagine a lot of people got shaken out by the drop just (barely) below recent lows. Still, it bounced back fast and I guess that tells you something about the demand.

Sure was a nice way to wake up!

 

[Lucrum]

Quote from SethArb:


...wish I was long ...

Me too, at least I'm not short.

 

[FullyArticulate]

Quote from pkts:

Still, it bounced back fast and I guess that tells you something about the demand.

Demand for the contract maybe, but not so much demand for beans. There will likely be 33% more ending stocks than any other year in the last 20.

The real story is the split between meal and oil today. Wow...

 

[pkts]

Quote from FullyArticulate:

Demand for the contract maybe, but not so much demand for beans. There will likely be 33% more ending stocks than any other year in the last 20.

Thats why I don't trade solely on fundamentals. That was the same argument that everyone was using when beans were at 550. All I know is its going up.

 

[VitaminE]

Grains are on the cusp of bull markets of historic proportions,

led by corn. Short at your peril.

 

[Cutten]

Quote from VitaminE:

Grains are on the cusp of bull markets of historic proportions,

led by corn. Short at your peril.

Agree. Corn has acted the strongest, has the best newsflow, and has the ethanol story to give it extra juice & speculative appeal. It makes no sense to buy beans or wheat when they are acting weaker.

IMO corn is going to at least the old highs around 550 from 1996.