Soybeans continue to rally on the futures market, so is it time to sell beans out of the field? Both corn and soybean futures are at their highest price levels since August, a surprising turn of events given the record large crop now being harvested. Dan Hueber, with the Hueber Report, says the bullishness in the soybeans is being caused by logistical issues rather than supply and demand issues, “There are a lot of logistical problems in the soymeal trade right now — where the processors have the beans, but they cannot get them to the points where the demand is. This has, in turn, pushed the soymeal market up along with the soybean market.” Soybean futures closed the open outcry session on Tuesday above the $10 mark.
Hueber told HAT the lows are likely in for corn, but feels there is a 50/50 chance soybean prices could retest the $9.20 level. Thus, he feels producers should consider making some sales now, “In my estimation, the market is offering a nice opportunity to take advantage of an aberration and sell some soybeans.” With prices near $9 a few weeks ago, many growers had planned on putting soybeans in the bin and waiting for better times. With a large crop of soybeans in Brazil, Hueber does not see an extended rally for soybeans.
Hueber also says at the present time, however, the market is providing some good pricing opportunity for the 2015 crop, “Sometimes a rally like this will provide an opportunity to make some additional sales or lock in some higher prices for the next crop.” November 2015 soybean futures did trade above the $10 mark on Tuesday.
Check out the Hueber report at our web site.