T & K Futures and Options Predicts Record Soybean Futures Prices
Many analysts are predicting a record tightness in global supplies of soybeans by the summer of 2008. A huge South American soybean crop may provide the only opportunity to lower soybean futures prices in the coming months.
South America and the United States produce more than 90% of all of the soybeans that the world consumes. Ocean freight shipping rates are currently at record highs. The United States soybean futures prices are very competitive because of the record low value of the US Dollar. This makes it cheaper for Asian countries (China) to buy shipments of US soybeans than South American soybeans. High shipping costs and competitive soybean futures prices may steer more demand to the US markets in the months to come. The problem is that corn for ethanol production is using up record amounts of the available planting acreage at the expense of soybeans. Visit [http://www.tkfutures.com/education.htm] to learn more about soybean futures prices.
India, China and many other Asian economies are booming economically. These countries consume huge amounts of soybeans because of the recent record expansion of meat consumption and the use of soy oil for cooking purposes. China is by far the world's largest importer of soybeans. So the global demand for soybeans is increasing at the same time that the available US planting acreage is expected to decrease. In our opinion, the increase in global demand and the decrease in available acreage will lead to a dramatic increase in soybean futures prices over the next six months. "If any weather disruptions occur in either South America or the United States, the commodity markets may finally get to see "beans in the teens"."
The author of this article is a 14 year veteran of the soybean futures markets and the president of T & K Futures and Options Inc. Before considering soybean futures or options as an investment vehicle, you must understand the there is significant risk of loss in soybean futures and soybean option trading. Use only risk capital for high risk investments like futures and options. Past performance is not indicative of future results. Visit http://www.tkfutures.com/risk_disclosure.htm to learn more.
South America and the United States produce more than 90% of all of the soybeans that the world consumes. Ocean freight shipping rates are currently at record highs. The United States soybean futures prices are very competitive because of the record low value of the US Dollar. This makes it cheaper for Asian countries (China) to buy shipments of US soybeans than South American soybeans. High shipping costs and competitive soybean futures prices may steer more demand to the US markets in the months to come. The problem is that corn for ethanol production is using up record amounts of the available planting acreage at the expense of soybeans. Visit [http://www.tkfutures.com/education.htm] to learn more about soybean futures prices.
India, China and many other Asian economies are booming economically. These countries consume huge amounts of soybeans because of the recent record expansion of meat consumption and the use of soy oil for cooking purposes. China is by far the world's largest importer of soybeans. So the global demand for soybeans is increasing at the same time that the available US planting acreage is expected to decrease. In our opinion, the increase in global demand and the decrease in available acreage will lead to a dramatic increase in soybean futures prices over the next six months. "If any weather disruptions occur in either South America or the United States, the commodity markets may finally get to see "beans in the teens"."
The author of this article is a 14 year veteran of the soybean futures markets and the president of T & K Futures and Options Inc. Before considering soybean futures or options as an investment vehicle, you must understand the there is significant risk of loss in soybean futures and soybean option trading. Use only risk capital for high risk investments like futures and options. Past performance is not indicative of future results. Visit http://www.tkfutures.com/risk_disclosure.htm to learn more.
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