BLOOMINGTON – The excitement continues for the soybean market as we have seen a nice recovery in prices.
Aaron Curtis of MIDCO says beans have traded higher since mid-October. January beans were above $10.50 early this week.
“The funds continue to hold a sizeable long position and continue to want to defend that each and every day,” Curtis told The Central Illinois Farm Network on Tuesday.
The cash situation is a little different as we’ve got some spreads widening out. Also, the cash market along the river has been on the weak side, according to Curtis. The corn market lacks excitement, although it was an up day on Monday. Markets continue to focus on South American weather.
“One of the weather forecasts came out yesterday and it looked like a little drier trend in the Dec.-Feb. period. That showed a large portion of Argentina expected to have 40-50 percent of normal precipitation.”
On Friday, the USDA crop report will be issued and will indicate South American production numbers which should be fairly healthy as Brazil is looking at a record bean harvest.
“It’s another fundamental reminder that today we have plenty of supplies both domestically and globally,” said Curtis.