By Jon Scheve, Superior Feed Ingredients, LLC
As the holidays approach, the market continues to watch South American weather and Chinese purchases. The Brazilian bean crop was planted later than usual, and precipitation has been lower than normal, but it could still turn out an average size crop. Argentina has been dry as was expected with La Niña present. Crucial crop development will be taking place next month. The export pace over the next couple of months to China will play a pivotal role in price directions.
Recently I set basis on 100% of my 2020 bean crop. With the news of low U.S. carryout, I had hoped basis would continue to rally. However, as the chart below shows, basis climbed until Nov. 1 and then went flat. The red X is the date and value I sold basis, picked up on my farm. The white line shows the best posted bids available since harvest in my area.… Continue readingRead More »