Soybeans The markets were incredibly volatile last week, perhaps the most they’ve been in history. Theoretically, cash basis should be more stable than futures, which are affected by multiple factors and where hedge funds play an important role by investing large sums. Historically, the cash market normally shows daily fluctuations of just a few cents per bushel, and it will sometimes not move more than 10 cents for several months. Because of basis stability, trading houses use those levels as a hedge against origination. Having long or short positions in basis isn’t very risky, although having such positions in futures certainly is. Typically, trading houses originate soybeans from farmers while elevators offer flat prices and...

TAGS – Feed Grains, Soy & Oilseeds, Wheat, China, North America, South America