“ugly reversal down…great job selling this week!”
Our broker sent out a note to everyone today saying, “ugly reversal down… great job selling this week!” We’re glad we were keeping a keen eye on the markets and were able to take advantage of this week’s 2014 bean rallies with set prices that were literally just shy of the highs.
Today, Friday, November 15th, beans closed down $0.24, and it doesn’t look like they will be headed back up any time soon. Today’s drop according to Ag Resource was precipitated by:
- Informa’s new crop soybean seeding estimate being record large, as expected
- Slowing interest from China due to falling hog margins
- Slowing interest from China due to the fact that China has overbought from the US to account for expected port delays in South America
- An expected significant shift to South America expected in the 2nd half of the crop year – South America weather remains favorable for a good crop
Our broker at Nebraska Grain says there is a big risk in not hedging beans/wheat now as his chart on November 14 beans shows support at $7.50 area… the same low that was hit in 2008 when corn hit $2.92. He says, “write it down we are going to test these 2008 financial melt down lows in next 18-24 months or sooner.”