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ASA president surprised by market rally

The president of the American Soybean Association says he was caught off guard by the recent rally in grain futures.

Richard Wilkins of Greenwood, Delaware tells Brownfield he never expected to see $4 corn or $10 soybeans in 2016.

“I think the fundamentals are supporting part of this rally, but I also believe that some technical trading has kicked in.  So perhaps we maybe approaching some of that overbought territory.”

Wilkins says all of his 2015 soybeans and most of his corn was sold at harvest, but he is looking for opportunities to market the remaining old crop.

“I have been watching this rally quite intently, and I think we’re going to go ahead and get the rest of our old-crop corn priced.”

Wilkins says the rally has provided good opportunities to forward-contract the 2016 crop, and he plans on taking advantage.