Snapper-Backer in corn,beans

Discussion in 'Ag Futures' started by local, Oct 20, 2010.

  1. local

    local

    In the olden days, they would have called today's price action a snapper-backer. Beans to the teens ? bean spreads traded at their highest levels, 72 on the july/nov.

    Regards, local
     
  2. Compelling bullish fundamentals in the ag space this time around...but how much of this is currency/QEII related...?
     
  3. Dollar had biggest two day swing I have ever seen.
     
  4. local

    local

    Currencies undoubtably are supportive to grain prices right now but I think there is more to it than that. The market has apparently got the bean balance sheet wrong, in particular has got the demand from China all wrong. Weekly exports just over 2 million tons,maybe not a record but close to it. Demand driven market ? Right now I don't see any meaningful break as the market struggles for acres for next year. Seems very likey that there will not be enough acres to go around next year, shortage will show up somewhere. Not sure what would happpen if there were weather problems. Just buy it. Wheat/ corn straddle has narrowed almost to where you should buy wheat/sell corn, maybe another dime. Just rambling.

    Regards, local