This is a sample entry from John Payne’s newsletter, This Week in Grain, published on Thursday, February 20, 2014.
If you have been a follower of TWIG for a while, you know our goal is to inspire ideas so you can hedge or speculate on your own terms. As we get into the planting season, here is an idea you can use that I think can help cover your hedges or re-own the grain you have already contracted. Based off today’s report and the market action that is following, I don’t think the market got the acres it wanted. My confirmation of this is in the form of the November 14 soybeans vs. the November 15 soybean spread. If you want to re-own beans, playing this to the upside isn’t a bad idea in my opinion. In past years, this spread got very wild, trading out beyond 4.00 in 2012.
November 14 Beans – November 15 Beans
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EXAMPLES OF HISTORIC PRICE MOVES OR EXTREME MARKET CONDITIONS ARE NOT MEANT TO IMPLY THAT SUCH MOVES OR CONDITIONS ARE COMMON OCCURRENCES OR ARE LIKELY TO OCCUR.
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