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July 6, 2017 King Soybeans are heating up?
As I have written for years, in this business, I think the biggest, fastest and most dynamic event we ever see is a weather market in King Soybeans…. And while you never know that a drought IS a drought until hot and dry conditions have gone on for a while, the markets DON’T wait to price in weather related crop damage…and that appears to be precisely what we are seeing now in the Soybean complex. Soybeans have traded up over 75 cents a bushel during the past week, due to a recent bullish USDA crop report, RECORD World Demand, AND various current weather forecasts calling for some degree of above normal temperatures and below normal rainfall for various parts of the Great Plains and Midwest…to begin with...during the next few weeks. To me, this is a here and now situation…in that I believe Soybeans (and Soybean Meal) are about to go explosively straight up due to hot, dry conditions…OR…the weather will become more favorable, and Soybeans will most likely go straight back down to where they were just a few weeks ago…and this, therefore, is absolutely the perfect situation for the “1 & 1” approach. As I am forever reminding you, this stuff is more about the math than anything else…And here is what the numbers look like to me… I don't think it gets any better than this...Anything can happen but what I CAN'T imagine is that this market is just going sit here between 320 & 330 for the next few months...that IT'S EITHER GOING UP BIG...OR RIGHT BACK DOWN… Here is the big picture…
The grains ARE heating up…These ARE great numbers and this IS a letter perfect 1 & 1...So, if you have the risk capital, DON’T just sit there and WATCH all this… Pick up the phone and call me…Most of my energy goes into research and these newsletters… Thanks, Bill 866-578-1001 770-425-7241 The author of this piece currently trades for his own account and has a financial interest in the following derivative products mentioned within: Soybeans, Soybean Meal |
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