Tis the season for $12 soybeans
At least one analyst believes $12 soybeans will be here for the holidays.
Paragon Investments ag risk manager Jamey Kohake says the market has a lot of momentum.
“Seasonally this time of year, pre-Thanksgiving (and) the week of Thanksgiving, usually the ag markets are seasonally bullish. But of course, this is 2020 so who knows. But I would say yes, short-term (soybean futures) are going to be trending higher.”
That’s mostly because of a tight carryout and continued fund buying.
But for these price levels to be sustained, he tells Brownfield South American weather challenges have to persist.
“Also, are the funds going to want to bank a big profit before the end of the year or not? Fundamentally, I would say there is more upside. But weather could change in a second in South America.”
Exports are also a big factor. Kohake says the higher moves are limiting physical grain sales, as evidenced by a recent slowdown in soybean purchases by China.