USDA gave beans a double-dose of good news last week, with March 1 stocks and 2009 planting intentions both less than expected. Wall Street chimed in with gains of its own, giving fund managers the green light to add to their net long positions. More upside targets loom as inviting objectives, meaning it's full speed ahead for bulls, especially on the old crop side.
USDA should lower its forecast of Sept. 1 supplies in this week's crop report, but the big question mark is what the agency will do with Argentine production. The government there threw the market into a tizzy by seeming to cut its estimate of output 180 million bushels below USDA's last guess. However, the ag ministry said the release was made by error, yet still hasn't announced what it thinks the right numbers are. As a result, though the farmers strike ended, Argentina remains a major source of uncertainty.
To read Bryce Knorr's complete weekly soybean review, click HERE.
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