One of the reasons speculators love soybeans is the potential for big moves. Beans provide a thrill a minute, sometimes more.
Fears that Chinese demand might be easing were put to rest — at least by the bulls — with news China was continuing to purchase old crop supplies for the U.S. After testing $10 early in the week on the flu sell off, old crop rallied back hard with May topping $11.
While the old crop/new crop spread moved to new highs, November went along for the ride too, as estimates of Sept. 1 carryout fell. Beans likely are buying acres, with fields too wet in many areas for spring wheat, corn and cotton. A premium of $1 over the crop insurance price makes new crop an attractive prospect as well.
To read Bryce Knorr's complete weekly soybean review, click HERE.
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