Twenty Dollar Beans?
Bloomberg are carrying an interesting story this morning in which an analyst with Standard Chartered says that soybeans could yet rise to an all-time high of $20/bushel.
Confusingly he says that he is "a little bit more bullish than bearish".
I think that if I thought beans could hit $20 I'd describe myself as more than "a little bit" bullish. He doesn't mention a specific time frame in which this event might happen either.
Once the harvest kicks-off in the US surely there's nothing more to be bullish about with South America set to plant wall to wall beans for spring 2010?
He does make an interesting point about corn demand though, with sugar at 28-year highs in the US and all-time dollar highs in London, demand for corn syrup sweetener (and hence corn) should be very robust.
Bloomberg story
Confusingly he says that he is "a little bit more bullish than bearish".
I think that if I thought beans could hit $20 I'd describe myself as more than "a little bit" bullish. He doesn't mention a specific time frame in which this event might happen either.
Once the harvest kicks-off in the US surely there's nothing more to be bullish about with South America set to plant wall to wall beans for spring 2010?
He does make an interesting point about corn demand though, with sugar at 28-year highs in the US and all-time dollar highs in London, demand for corn syrup sweetener (and hence corn) should be very robust.
Bloomberg story