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Mascoutah, Illinois | It is very interesting to say the least. These markets have traded so oddly in terms of the calender for the past twelve months anything is possible. We will have to wait and see how the price action shakes out for the rest of this week. If we were limit up tomorrow, we would almost reach his price objective in September corn. I wouldn't rule anything out at this point in terms of price action. If his chart comes to fruition, we would see December corn around $4.40 and November beans around $11.00.
One thing to keep in mind is we may see his objective hit at $4.25 in the September contract. The bad news may be the basis screams lower in September, October, and November delivery and negates the entire move as elevators will have no place to put any of this new crop. I believe if we go higher towards his objective, you have to sell the board from December throught next year because the "carry" will warrant it.
Ray Jenkins made a good post down below about basis and storage or the lack of it for this upcoming harvest.
Tarafarms has been on top of the "carry" and can comment on it far better than I. | |
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DJM nice call on this Monday
