Quick Update

Sorry for the lack of activity. I will publish an updated final draft of the major article by Friday. It' s been reorganized and has gotten longer.

On another note, soybeans have gone into backwardation, as seen in chart below.



Backwardation is a sign of shortages, as immediately deliverable soybeans trade at a premium to soybeans for future delivery.

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5 Responses to Quick Update

  1. JUBDOUG says:

    When did beans go into backwardation?

  2. squasj says:

    Old-crop is in backwardation allright, and has been for some time.

    Ever since South-Americas bumper crop that everyone was waiting for, didn't bring prices down just about enough because guess what - everyone who could, waited to buy untill Braz harvest because of the lower prices all that new supply would bring. And then you got the shifting of demand up to US because South-American infrastructure is crap and the line-up on Braz shores soared. And all this in a time when old-crop stocks in US is getting thin in the end of the marketing year. Of course you get backwardation.

    Look at new crop soy: It runs at contango.

    There's not that much new under the sun.

  3. squasj says:

    my point beeing, of course: Soy Old-crop backwardation in july is not a sign of some new world food crisis. It's just the name of the game. I gave you the explanation to the size of the backwardation. Now, start farming, learning og lose your shirt in a market you don't know.

  4. Kevin says:

    considering these things are toxic to the human body I say good riddens.. seriously..google search soy toxicity and have a stiff drink in your hand..your nerve will need it..

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