Have Soybeans Really Bottomed Out?

Soybeans may have made significant lows, but it doesn’t mean there will be a big rally due to any fundamental information that we know now. As we look at what may happen at harvest and into 2016, it is very possible that soybeans can trade back down to the lows made when traders sold futures as soon as the September 11^th WASDE Report was released.

On September 11^th the low on the November 2015 soybean contract was $8.53 ¼. January 2016 was $8.57, March 2016 was $8.59 ¾ and July 2016 was $8.66 ½.  Unfortunately and unlike corn, there is not enough price increase to justify carrying, or storing soybeans from harvest into 2016. Unless there is a way to find free storage, or the spreads go to carry, it will cost to store beans after harvest.  (more)