Going into the November Supply and Demand Report, the Money Farm market analyst Luke Swenson says grain traders were optimistic the USDA would tighten supplies, but the trade was only looking for a small reduction to corn and soybeans. “Then, the USDA actually lowered soybean yields more than expected and increased exports.” It’s been an atypical harvest market. “Everyone was downtrodden going into harvest with futures bottoming. Coming out of that, prices rallied right into great cash prices. In most places, people had enough storage to hold onto corn and they took the huge rally in soybeans. We went 100 percent sold on soybeans one week ago and told farmers to re-own calls, stay long. The unbelievable thing is we’re calling all of these guys and everyone is out already. Even our managed customers had mostly sold out. When you have empty pockets shore to shore on soybeans, that’s not a normal harvest.”
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