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Market Analysis



Capturing carry and paying for storage

By Jon Scheve, Superior Feed Ingredients, LLC Due to the government shutdown this month’s USDA report, arguably one of the top three reports of the year, wasn’t published. There will likely be more market volatility until an impartial number can be released by the government again. Many in the trade …

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Reasons to be bullish or bearish soybeans

By Jon Scheve, Superior Feed Ingredients There are many factors that affect the futures market. It’s easy to rationalize why the market could be headed for a rally or a decline at any given time.  Last week I discussed the reasons to be bearish or bullish corn.  This week I …

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The pros and cons of selling straddles

By Jon Scheve, Superior Feed Ingredients, LLC While last week’s bean trade with China was one of the largest single day trades ever, it was still significantly less than the market was hoping. The market will need at least three more trades like this to get excited. Plus, time is …

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Capturing carry and paying for storage

By Jon Scheve, Superior Feed Ingredients, LLC For the 1st time in 9 years, December corn on the last day of November traded higher than the last day of October by 3 cents. Looking forward, 7 of the last 8 years, March corn eventually traded at a higher value than where …

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A look at buying put options

By Jon Scheve, Superior Feed Ingredients, LLC The market continues to watch the actions of the President and China. It’s hard to know if there will be a trade fix at the G20 meeting in just over a week. I expect a sideways market through the holiday and leading up …

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The difference between buying and selling calls

By Jon Scheve, Superior Feed Ingredients, LLC The USDA lowered corn yield estimates about 2 bushels per acre and decreased demand a little as well. Despite these adjustments, the report still showed a drop in next year’s carryout and the tightest stocks-to-use ratio in 4 years. This could help keep corn …

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Buying calls is gambling

By Jon Scheve, Superior Feed Ingredients, LLC The President started tweeting about trying to work with China to end the trade war and the market rallied 30 cents. The next morning a White House advisor said there wasn’t much progress, but the market still closed the day positively. After the …

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