Your Pro Farmer newsletter (Feb. 12, 2022) is now available

Soybean prices surged above $16 amid falling Brazilian production, a flurry of export sales to China and “unknown” and a rush of fund buying. Soybeans (and corn) futures haven’t been at these levels many times in the past and haven’t been able to maintain the elevated prices for long. Can price rallies continue?... yes. Will markets continue higher?... probably. When and at what price will markets top?... no one “knows” for sure. Is this a historic selling opportunity?... absolutely. While there is more upside potential, history suggests the eventual price drop will be sudden and dramatic. It might not take anything more than funds, who hold record or near-record long positions in soybeans and corn, deciding to liquidate to top markets. Livestock markets also remain bullish, with cattle and hog futures rallying to new highs. But much like the grains, money flow probably means more to near-term price action than fundamentals. USDA’s February Supply & Demand Report offered no real surprises, though U.S. ending stocks were disappointing (not bearish) compared to pre-report expectations. We cover all of these items and much more in this week's newsletter, which you can download here.