With soybeans bumping against $12, NAU Country Vice President of Farm Services Rich Morrison is concerned about market risks. The first is China cancellations. “If the South American crop continues to perform well. I think we all knew it was a possibility coming down the road. We’ve seen China do that, buy cheap and exit out of the positions if they don’t need soybeans. I don’t blame them. They don’t want to overbuy at expensive prices, but that’s a risk.” Another risk is the record long position of traders. “The biggest risk farmers have right now is the fund position in the market, if and when they decide to liquidate. I don’t know that they will, but if something changes, like China, that could certainly cause big selling in the market.”
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