$25,000.00 Profit from Soybeans in 2007, as it happened in 2004

$25,000.00 Profit from Soybeans in 2007, as it happened in 2004

This year is setting up to be one heck of a trading season for the Corn & Soybean markets! What is suggested is low-risk option and futures trades for both December corn and August and November soybeans.

In fact, we may see soybeans trade equal to or surpass the (6/2004) highs indicated on the seasonal chart.
Folks who traded August soybeans back in 2004 saw profits of $25,000 as prices climbed from April into July and about the same amount as prices fell from July into September with simple low-risk option purchases. I'm referring to 2004 because the setup is much the same for 2007!

This isn`t a trading opportunity to be missed! A small trading account can explode in this type environment!

Farmers responded to the high demand and low supply of the corn market for this season by intending to plant 90.454 million acres of corn this season as compared with the average trade estimate of 87.98 million acres (range 86.3-90.76) and 78.327 million acres planted last year. That's a large number but will be needed to keep up with expanded ethanol production.

For Soybeans, the USDA indicated that producers plan to plant 67.14 million acres for the 2007 crop as compared with the average trade estimate of 69.179 million acres (range 65.93-70.8) and 75.522 million acres planted last year. If US producers plant 67.1 million acres and yield comes in near 42 bushels/acre (assuming usage near 3.163 billion bushels), ending stocks would come in near 218 million bushels as compared with 449 million last year and 256 million bushels three years ago.

This is a very low bullish ending soybean stocks number for the 2007 growing season. And, even though the corn numbers are high, demand for ethanol will consume the majority of it.

A bit of what Soybeans and Corn are,

Soybeans:

Soybean is the common name for the annual leguminous plant and its seed. The soybean is a member of the oilseed family and is not considered a grain. The seeds are contained in pods and are nearly spherical in shape. The seeds are usually light yellow in color. The seeds contain 20% oil and 40% protein. Soybeans were an ancient food crop in China, Japan, and Korea and were only introduced to the US in the early 1800s. Today, soybeans are the third largest crop produced in the US behind corn and wheat. Soybean production in the US is concentrated in the Midwest and the lower Mississippi Valley. Soybean crops in the US are planted in May or June and are harvested in autumn. Soybean plants usually reach maturity 100-150 days after planting depending on growing conditions.

Soybeans are used to produce a wide variety of food products. The key value of soybeans lies in the relatively high protein content, which makes it an excellent source of protein without many of the negative factors of animal meat. Popular soy-based food products include whole soybeans (roasted for snacks or used in sauces, stews and soups), soy oil for cooking and baking, soy flour, protein concentrates, isolated soy protein (which contains up to 92% protein), soy milk and baby formula (as an alternative to dairy products), soy yogurt, soy cheese, soy nut butter, soy sprouts, tofu and tofu products (soybean curd), soy sauce (which is produced by a fermentation process), and meat alternatives (hamburgers, breakfast sausage, etc).

The primary market for soybean futures is at the Chicago Board of Trade. The CBOT’s soybean contract calls for the delivery of 5,000 bushels of No. 2 yellow soybeans (at contract par), No. 1 yellow soybeans (at 6 cents per bushel above the contract price), or Nov. 3 yellow soybeans (at a 6 cents under the contract price). Soybean futures are also traded at exchanges in Brazil, Argentina, China, and Tokyo.

Corn:

Corn is a member of the grass family of plants and is a native grain of the American continents. Fossils of corn pollen that are over 80,000 years old have been found in the lake sediment under Mexico City. Archaeological discoveries show that cultivated corn existed in the southwestern US for at least 3,000 years, indicating that the indigenous people of the region cultivated corn as a food crop long before the Europeans reached the New World. Corn is a hardy plant that grows in many different areas of the world. It can grow at altitudes as low as sea level and as high as 12,000 feet in the South American Andes Mountains. Corn can also grow in tropical climates that receive up to 400 inches of rainfall per year or in areas that receive only 12 inches of rainfall per year. Corn is used primarily as livestock feed in both the United States and the rest of the world. Other uses for corn are alcohol additives for gasoline, adhesives, corn oil for cooking and margarine, sweeteners, and as a food for humans. Corn is the largest crop in the US, both in terms of the value of the crop and of the acres planted.

The largest futures market for corn is at the Chicago Board of Trade. Corn futures also trade at the Bolsa de Mercadorias & Futuros (BM&F) in Brazil, the Budapest Commodity Exchange, the Marche a Terme International de France (MATIF), the Mercado a Termino de Buenos Aires in Argentina, the Kanmon Commodity Exchange (KCE) in Korea, and the Tokyo Grain Exchange (TGE). The CBOT futures contract calls for the delivery of 5000 bushels of No. 2 yellow corn at par contract price, No. 1 yellow at 1-1/2 cents per bushel over the contract price, or No. 3 yellow at 1-1/2 cents per bushel below the contract price.

Want to know how you too can profit with these low risk commodity options trades, if so feel free to visit the website. www.vtu.vze.com

Criminal Records | Criminal Record | Public Record Finder | People Search | Background Checks | Background Check Gateway | | Public Record | Lookup Anyone | People Lookup

Article by: Nick www.lottobusta.com/trading :: www.vtu.vze.com

5 out of 54 out of 53 out of 52 out of 51 out of 5  

Not yet Rated | Article Directory
$25,000.00 Profit from Soybeans in 2007, as it happened in 2004

Please Rate this Article