This Rally in beans is driven by hope. Hope that the south American crops will dwindle. The reality the net is larger than we started the crop year. Also, this rally is driven by money flow. The funds really want a bean rally. They are pushing the envelope of what the fundamentalist may find appropriate. None the less, we are rallying. Hedgers use this rally to catch up on old crop sales. Anything close to 10.00 should present value. The new crop 10.15 or better looks real rich for the long run. A couple things to consider. Bean Oil stocks are a 5 year low. The oil cant really get going. The bean stocks are approaching 500 million bushels. And The global bean stocks are a record. Yet beans are at or near 10. I don’t think this has ever been the scenario in the history of the markets. There really is much to consider here. One thing I do think, the fundamentals eventually play out.
