Posted by: usset001 | March 16, 2009

Once in a while I get it right

thumbsupiconSeveral weeks ago I commented on the curious divergence of signals from prices, basis and carrying charges. Futures prices for corn and soybeans were trending lower, but a strengthening basis and narrowing carries pointed to a stronger market. I cast a skeptical eye on futures and noted that I place more importance on basis and carry as taking a better measure of underlying market strength.

I am pleased to note that the board was listening, as prices have done nothing but trend higher since then. Pre-harvest marketers take note – new crop selling opportunities are developing as we speak.

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