Posted by: usset001 | November 18, 2008

Goodbye to the Nov’08 soybean contract

soybeansiconLast Friday was the last trading day for the Nov’08 soybean futures contract. Contracts trade for a much longer period of time than just a few years back. By my records, the Nov’08 contract first traded nearly three years ago, in mid-Januaryof 2006, when it closed at $6.28 per bushel (The ’04 contract traded a little more than 2 years). It reached its life-of-contract low (based on closing prices) of $6.23 on its third day of trading. It would take until the end of 2006 to break the $7 mark. The life-of-contract high (again, based on closing prices) came on July 3 of this year; $16.31 per bushel and more than $10 higher than its value on the first day of trading. That might just be the largest spread ever for soybeans between the LOC high and low.

Food for thought: If the Nov’10 contract had a LOC high of $10 higher than its intitial closing price, we could have $23 soybeans. It’s just a thought.

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