By Ashley DavenportMultimedia Editor
When the USDA released its crop production report on Oct. 12, they decreased their September soybean number by 0.4 bushels an acre to 49.5 bpa. Now that harvest is well underway, soybeans are selling cheap.
According to Andy Schissler of S&W Trading, if the soybean yield was as big as expected, the price sould be lower.
“It’s like we’ve rallied during harvest and pushed up and traded above $10 on November beans, which incentivizes farmers to sell them and sell cash out of the field,” he said.
Whenever the market sees a harvest rally and farmers sell into it, “more dynamic” soybean markets are made.
“Maybe nothing happens and we trade the junky $2 volatility of the market,” Shissler said. “There’s a chance we expand that volatility up $3 or $4.”
Hear why he thinks there could be a “hidden story” in the soybean market on AgDay above.