Ugly day, for sure.
What do you think all those users of corn and beans are thinking?
The crush margins were very profitable last week and are more profitable now.
Interest rates were down last week for the first time in 12 weeks.
Maybe we are headed to a recession, but it will take months before we know for sure. Recessions are when people are unemployed. With such a tight job market, how can we have a recession?
Grain markets have been known to recover, plus, there is always a Plan “B” followed by a Plan “C”, and Plan "D", even if they do not recover. .
Given all the combinations of marketing positions that can be taken with the market tools, there is no need to be panic selling.
If you think you have to do something to protect the downside, buy puts.
Do not sell futures, HTA, forward contract, or cash sales. It was just four weeks ago that market gurus were talking about $18 soybeans. Since then, we learned there are 2.1 million fewer acres of soybeans planted in the USA than the market expected.
Just turn the screen off and do your best to put the market action out of your mind until this afternoon’s Crop Condition Report and weather forecasts.
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