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Beans, Beans, Who's Got The Beans?

Supplies of soybeans are very much a question mark.
Bryce Knorr 
Published: Jun 1, 2009

Strong bull markets seem to have a mind of their own, and that certainly seems the case with soybeans. News that China was washing out more purchases didn't dampen buying enthusiasm; if anything, it helped turn up the heat, as U.S. sources were happy to buy up the supplies. With fund money pouring into just about everything, last week's consolidation gave way to a big move over $12 on the July chart to start the week..

The July/November spread, which pulled back last week, was off to the races again. With one month until delivery, beans could be set for their final run.

Longer term, supplies of soybeans are very much a question mark. But those questions — acreage, yield and demand — won't be answered for quite some time. Last week's rally appears to be shifting November futures to the bullish season trend, which typically keeps gains going for a time.

To read Bryce Knorr's complete weekly soybean review, click HERE.



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