$25,000.00 Profit From Soybeans In 2007 As It Happened In 2004
This year is setting up to be one heck of a trading season for the Corn & Soybean markets! What is suggested is low-risk option and futures trades for both December corn and August and November soybeans.
In fact, we may see soybeans best pizza NYC trade equal to or surpass the (6/2004) highs indicated on the seasonal chart.
Folks who traded August soybeans back in 2004 saw profits of $25,000 as prices climbed from April into July and about the same amount as prices fell from July into September with simple low-risk option purchases. I’m referring to 2004 because the setup is much the same for 2007!
This isn’t a trading opportunity to be missed! A small trading account can explode in this type environment!
Farmers responded to the high demand and low supply of the corn market for this season by intending to plant 90.454 million acres of corn this season as compared with the average trade estimate of 87.98 million acres (range 86.3-90.76) and 78.327 million acres planted last year. That’s a large number but will be needed to keep up with expanded ethanol production.
For Soybeans, the USDA indicated that producers plan to plant 67.14 million acres for the 2007 crop as compared with the average trade estimate of 69.179 million acres (range 65.93-70.8) and 75.522 million acres planted last year. If US producers plant 67.1 million acres and yield comes in near 42 bushels/acre (assuming usage near 3.163 billion bushels), ending stocks would come in near 218 million bushels as compared with 449 million last year and 256 million bushels three years ago.
This is a very low bullish ending soybean stocks number for the 2007 growing season. And, even though the corn numbers are high, demand for ethanol will consume the majority of it.
A bit of what Soybeans and Corn are,
Soybean is the common name for the annual leguminous plant and its seed. The soybean is a member of the oilseed family and is not considered a grain. The seeds are contained in pods and are nearly spherical in shape. The seeds are usually light yellow in color. The seeds contain 20% oil and 40% protein. Soybeans were an ancient food crop in China, Japan, and Korea and were only introduced to the US in the early 1800s. Today, soybeans are the third largest crop produced in the US behind corn and wheat. Soybean production in the US is concentrated in the Midwest and the lower Mississippi Valley. Soybean crops in the US are planted in May or June and are harvested in autumn. Soybean plants usually reach maturity 100-150 days after planting depending on growing conditions.