Today we begin a new feature here at Hoosier Ag Today: the Bower Trading Market Strategy Report. Every Monday, we will bring you timely market comments from Jim Bower of Bower Trading in Lafayette.
Last week, the soybean market put on quite a show. While closing lower on Friday, the bean market spent most of the week moving up into areas we have not seen in a while. Jim Bower says the market is on a mission, “A mission to find more U.S. soybean acres. It seems to me they want to do it through price. I hear that as much as 6 to 7 million more soybean acres could come into production in 2017. With the price of new crop soybeans around $10.30 and the price of corn around $3.95 the market is telling producers we want more soybeans out of you guys.”
Bower says these price levels are temping some producers to not only sell the 2016 crop but price part of the 2017 crop, “It looks to me like some producers are going out and hedging or selling soybean production for the next year. It does not look like they are very eager to price out corn production at this time.”
Bower also notes that yields in South America are looking good which will become a factor in the market in the coming weeks. He added that the changes coming in Washington with the beginning of a new administration will also be a market factor to watch closely.
For more information, contact Bower Trading at 1-800-533-8045 or visit www.bowertrading.com
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