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Market Analysis



Capturing carry and paying for storage

By Jon Scheve, Superior Feed Ingredients, LLC For the 1st time in 9 years, December corn on the last day of November traded higher than the last day of October by 3 cents. Looking forward, 7 of the last 8 years, March corn eventually traded at a higher value than where …

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A look at buying put options

By Jon Scheve, Superior Feed Ingredients, LLC The market continues to watch the actions of the President and China. It’s hard to know if there will be a trade fix at the G20 meeting in just over a week. I expect a sideways market through the holiday and leading up …

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The difference between buying and selling calls

By Jon Scheve, Superior Feed Ingredients, LLC The USDA lowered corn yield estimates about 2 bushels per acre and decreased demand a little as well. Despite these adjustments, the report still showed a drop in next year’s carryout and the tightest stocks-to-use ratio in 4 years. This could help keep corn …

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Buying calls is gambling

By Jon Scheve, Superior Feed Ingredients, LLC The President started tweeting about trying to work with China to end the trade war and the market rallied 30 cents. The next morning a White House advisor said there wasn’t much progress, but the market still closed the day positively. After the …

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Collecting soybean carry

By Jon Scheve, Superior Feed Ingredients, LLC Corn and beans rallied last week because rain swept through the Midwest slowing harvest. In select areas where harvest is behind, processors are bidding up for grain. It’s unlikely these basis bumps will last long, but some lucky farmers who managed to harvest …

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