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Take Advantage of Rallies to Price 2014 Grain

Posted on November 11th, by Administrator in Beans, Corn, Wheat. Comments Off on Take Advantage of Rallies to Price 2014 Grain

Beans: Ag Resource says that the current rallies are supported by the slightly lower ending stock figure but are not likely to last. The January report is expect to report higher bushels per acre for beans than the most recent November report. Additionally, South American forecasts are generally favorable. Ag Resource says:

[quote]January beans are expected to test the October highs near $13.10 in the upcoming week, but based on a massive S. American crop and record large world oilseed supplies and stocks, rallies are not likely to last. A secondary top should be scored by late November that offers a new selling opportunity. US and world farmers will expand seeding next year and November of 2014 futures should slide near $9.00. Sell rallies. [/quote]

Corn: Like beans, corn yields are expected to rise in the January USDA report. It is expected that production will exceed demand and that bio fuel demand growth will be lacking – both calling for a bear market. Ag Resource says:

[quote]ARC is focused on hedging 2014/15 and 2015/16 production on further rallies. December corn in 2014 could easily slide to $3.50 or below. [/quote]

Wheat: Ag Resource is looking for strong support at $6.40 and below. Their advice is:

[quote]It’s our strategy to use rallies to $7.00+, basis July CME, to advance 14/15 sales to 65- 75% for a decline to $5.50. [/quote]

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