Sept Soybeans Post Largest One-Day Gain Ever
Expiring September soybeans posted an astonishing gain of 274c Friday, almost certainly the largest one-day gain of any CBOT soybean contract ever, and close to the equivalent of four limit up moves! (There are of course no limits on a contract in delivery).
The reason? The Sep contract expired Friday and shorts got forced into buying in at whatever price they could as the exceptionally tight spot cash market prevented them from delivering physical beans instead.
Hurricane rains have delayed the Mississippi Delta harvest meaning that there are very few physical soybeans around. Old-crop stocks have dwindled to a trickle and new-crop is running late, said one trader.
There were just 76 deliveries against expiring September.
Other contract months closed with gains in the region 25-27c on a bullishly construed USDA report.
The reason? The Sep contract expired Friday and shorts got forced into buying in at whatever price they could as the exceptionally tight spot cash market prevented them from delivering physical beans instead.
Hurricane rains have delayed the Mississippi Delta harvest meaning that there are very few physical soybeans around. Old-crop stocks have dwindled to a trickle and new-crop is running late, said one trader.
There were just 76 deliveries against expiring September.
Other contract months closed with gains in the region 25-27c on a bullishly construed USDA report.
