The Meal and Beans eased today. The rally may be a bit long in the tooth. The current weather scenario seems to be dialed into prices. Will the crops deteriorate further. Looking at the long term for beans. I have said use this rally to hedge old crop. The November 18 has given ample opportunity to start a program there as well. These prices given the long term outlook look pretty reasonable. Now, if you want to speculate with certain percentages. Go ahead. However it is prudent to lock in some sure thing money. That is here now. It is funny when we rally everyone wants to buy. when we break the opposite is true. The crowd appears to want to be long. This may be the time to hedge. The Ag outlook today predicts corn and bean acres approx. unchanged. The overall acreage is up however. It appears reasonable given the corn bean ratio, and the recent flat price rally, beans should gain some acreage. From what I hear in the real world more bean acres are being considered of late. A thought. With acreage unchanged come spring, and with a 100 million added to the exports, the bean carry is above 600 million bu. That also assumes no yield increase. Betting on the bull near 11.00 seems a bit out of reality. But who knows given the funds appetite for buying.
Be Well