How long can $15 soybeans last?
Soybeans blasted out of the gate yesterday with a gap open higher trading up to 15.22 ¾ in March before pulling back and settling only 4.5 cents higher on the day at 14.89. Corn traded firm all day finishing 8.5 cents higher at 6.74 ¾ with in a penny of the high. The big push was provided by the news of China fully reopening and doing away with any remaining restrictions from the Covid Zero policy. This was looked at as very positive for commodities, but we doubt this alone will be able to soybeans elevated at this level for long. We are in a strong seasonal period for grains and oilseeds, and we may see firm trade into the January WASDE. Then the market can trade the “final” US production numbers and whatever the domestic usage and world numbers end up. Our mentality is to take advantage of this rally and sell/hedge any leftover old crop and get 15-25% sold on new crop. For today, let’s watch 6.62 & 14.85 for support and 6.78 & 15.15 for resistance. NFC Grain Comments Options -12.28.22