Why? Well, I just drove across the country (Tues-Wed last week, 1800 miles in two days) westbound from CT to CO and I saw nothing but very dark, green, leafy soybean plants the whole way across route 70 to Kansas and across route 80 to Greeley. My guess is that soybeans produce far greater than expected and that corn produces far less
than expected, just based on burned out corn plants and dark green, leafy soybean plants. The next rain that goes through will turn into huge, fat soybeans but corn is dead without much hope (from the way I see it).
Again, just my observations that I thought I'd share with tradingview.
It cost me 90 gallons of gas and two days of my time to come to this conclusion so don't shoot the messenger for the message. Note the comments on the chart for how to proceed with a trade. Essentially, buy put spreads or sell call spreads. I think the tropical storm presents an interesting end to this market move in soybeans .
Tim 1:40PM EST, Monday, August 27, 2012
"Soybean prices are being weighed down by reduced concerns about U.S. supplies in the near term, as the ongoing harvest brings an influx of soybeans into the pipeline. That seasonal factor is being accentuated by farmers selling supplies to take advantage of near-record prices, said Don Roose, president of brokerage U.S. Commodities in West Des Moines, Iowa.
Anecdotal reports of better-than expected harvest yields across the Farm Belt are weighing on prices as well, Mr. Roose said.
Soybean futures hit all-time records earlier this month, buoyed by a severe drought that has punished crops for weeks in the central U.S. But futures came under pressure last week as speculative funds cut exposure to risk and the pace of the soybean harvest picked up."
Source: Tradingcharts.com futures.tradingcharts.com