We’ve written a lot about corn, but also soybean prices are going through the roof.
Here’s a wild chart sent to us by commodity trader Evan Stanley.
It’s a spread chart showing the difference between November 2012 soybean futures (soybeans to be delivered this November) and March 2013 contracts (to be delivered next March).
The gist is that soybeans to be delivered in a few months are WAY more expensive than soybeans to be delivered next year, basically symbolizing a massive short-squeeze, as the drought raises fears of a massive supply disruption right now. A few months ago the gap was pretty small, but in recent weeks, and then in the last couple of days, the price of soybeans for near-term delivery has exploded through the roof.
Click on the image to enlarge it.
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