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February rally provides opportunity to get current on cash sales

An analyst is encouraging producers to get current on cash sales as the corn and soybean markets experience a February rally.

Naomi Blohm with Stewart-Peterson says this is a good time to sell old and new crop contracts.

“Those charts are up near some overhead resistance levels, and if we aren’t there already, we’re maybe only a nickel away from it.  A lot of times the February rally is one of your best prices this time of year, unless you wanted to wait until summer.”

She tells Brownfield that strategy is risky, especially as the soybean chart continues to consolidate based on South American weather.

On that topic, Blohm says dryness is lingering across Argentina.

“Production on corn and soybeans in Argentina are going to be a little bit lower.  Yet on the flip side, soybean production in Brazil is supposed to be pretty large and might even be enough to offset the losses in Argentina.”

She says funds have begun covering short positions, providing strength to corn and soybean futures.

Blohm predicts if South American weather problems persist, more investors will become buyers in the market.

 

 

 

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