Where is the bottom? I truly wish I knew. For soybeans, the target
that many analysts have is $8.00/bushel. At least for me, if I put out a
target, there should be firm justification behind it. If I felt it was
valid, I would beg, borrow and use all the money I have to sell it. How
can anyone know where an exact bottom, or top might be?
What we
do know, 2014 is going to be known as the year of the record breaking
production in grains not only in the US, but around the world. If 2012
was known as the year of the drought, then 2014 is the year Mother
Nature did all she could do to produce bountiful yields. With the yields
that have so far have been harvested for both corn and soybeans, we
know ending stocks in 2015 are going to be more than we can handle.
Transportation
is going to be a major issue. Barge rates now are almost double what
they were a year ago. Ocean going ships, especially the container ships
are being bid up day after day. And then the problems with the rail
system beginning in Canada late 2013, filtering down to the Dakotas this
spring and summer will likely become a major problem in the US for the
movement of grain.(more)
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