Soybean Strategy - Sept 7, 2016
If you still have soybeans you need to price, use a rally over $9.65 per bushel on November futures to complete it. Like corn, an alternative might be a basis contract tied to May 2017 futures. That will allow you to retain the opportunity of seeing higher prices while moving the physical inventory.
We have no plans to recommend sales until after harvest. If you need to price soybeans by then, target a move to $9.65 on November futures to make sales. A basis contract is an alternative as well.
The trade seems focused on the potential for seeing a higher soybean yield. As we pointed out in the accompanying article, the data we currently have suggest that is a harder feat to realize than many understand. Amid the supply talk, the demand for soybeans remains robust. With the export book that is in place, it should be exceptionally strong this fall. There is even a chance Brazil may need to import soybeans to satisfy crush needs.
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