Play Turner’s Take Ag Marketing Podcast Episode 247 If you are having trouble listening to the podcast, please click here for Turner’s Take Podcast episodes! New Podcast
Soybeans are back, baby! After reviewing the WASDE, charts, seasonals, and fundamentals, we’ve concluded soybeans are back to where we were before the tariff trade war and before the Chinese swine flu disaster. Before those events happened soybeans traded between $9.00 and $10.50, with summer rallies (US or South America) making $12 possible. In this podcast I make the case that soybeans could be back in that trading range for the rest of the year and for 2021. Make sure you take a listen to this latest Turner’s Take Podcast!
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The report was bearish for wheat, neutral for corn, and bullish for soybeans. Fund money is coming into corn and we can see corn trading another 5 to 15 cents higher. Export demand is stronger, yields will probably come down again, and you can’t discount the fund money coming into the market as an inflation hedge.
In the short term we can still go higher until harvest ramps up. Ending stocks are likely to come down between now and the January WASDE but it is hard to see it go below 2 billion. Front month corn cold trade to $3.80 if Chinese demand continues. Otherwise we will be waiting to hear about yields from the field to get a handle on the crop size.
I do like buying far out courage calls in March, May and July of 2021 corn.