News this morning in the grain markets revealed that the number of acres that have been planted with soybeans is seriously deficient. This is bullish news for traders in the bean complex with Soybeans going limit up early in the session... thats 50 points!
Those that positioned themselves long in this weeks consolidation at around the 840 cents level will quite naturally be ecstatic with the November contract closing the day at 883.5 cents.
Wheat and corn joined in the volatility but with big moves DOWN.
Cotton also gapped up on similar news of lower acerages.
Farmers trying to cash in on the demand for corn is where those soybean and cotton acreages have gone to, so it is reasoned that there may be an excess of corn come harvest time.
2 comments:
wal,
I read about this somewhere a while back, I think it might have been the economist [I'll try and find the reference]
Anyhow, this shouldn't really have constituted *news* to the market.
Or, is this a second *news* of additional acreage that has been lost?
jog on
grant
Grant,
I think there was a bit of shock at the extent of reduced acreages.
It could very well be an overreaction as well, although futures are up a bit in the electromarket in the early AM (US). Todays (monday) day session could be telling.
I certainly don't think it's a buy at this stage... not for a mug speculator anyway.
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