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CBOT soybeans hit the teens

Agriculture.com Staff 01/08/2008 @ 12:33pm

Farmers get smiles on their faces when they hear the old market phrase of "beans in the teens." On Tuesday, the CBOT July 2008 soybean futures contract hit an all-time high of $13.05 per bushel.

Tuesday's market action follows last week's electronic trading of soybeans that hit $13.00. But, this is the first time the CBOT floor trading has seen $13.00 per bushel soybean prices.

"This has never happened here," says Joe Bedore, FC Stone's CBOT floor manager.

On June 5, 1973 the July soybean futures contract reached $12.90.

Because it is more actively traded, some traders say it is more impressive to see the nearby contract hitting the teens level. Other traders say with the March soybean contract trading at $12.75 on Tuesday, it's just semantics at this point.

"If a producer has old-crop beans, they can sell them for the July slot against the board at 'beans in the teens,' yahoo!" one trader screamed.

Vic Lespinasse, Illinois Grain trader and market analyst, agrees the nearby hitting $13 is more impressive.

"Let's get the nearby contract to $13," Lespinasse says. "I don't count this truly historic until we do. But, it is impressive and noteworthy that we are not that far from doing that."

A few short soybean crops worldwide, and biofuels has left a deficit acreage scenario, one CBOT floor trader says.

"Weather rallies could ultimately take us into the teens for nearby soybean futures," the trader says. "Goldman Sachs is forecasting a soybean high of $14.50. That is not too far-fetched."

Plus, a proposed energy mandate that will require more corn acres over the next seven years will be price-supportive for soybeans, the trader says.

Farmers get smiles on their faces when they hear the old market phrase of "beans in the teens." On Tuesday, the CBOT July 2008 soybean futures contract hit an all-time high of $13.05 per bushel.

But, now that $13 has come and gone -- at least for the present time with the July 08 contract -- did farmers cash in on the rally?

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