Thursday, May 12, 2016

What to do with Soybeans Here

The USDA gave us bean bulls a nice present on Tuesday with a big change in bean consumption /  ending stocks. The market responded as expected and then some. So what to do now?

My guess is that we will need some additional bullish info to keep the market moving up. Given the time of the year, that would probably have to be weather related. So far weather in the midwest has been quite good. The NOAA has a three month climatological forecast of near normal to slightly above precip and near normal temps . So my guess is that beans and corn both will at best tread water and more likely give back some of their gains until we get some real issues. But I don't see a huge downside. The ending stocks are  going to be tight enough that any actual crop problem will require demand rationing. So I took almost all off and am reestablishing on declines.

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