Soybean Prices May Benefit from Shift Away from Corn

The grain markets have been on an upward trend lately.

Rich Moran of Walsh Trading, Inc. believes he understands why corn and wheat prices are rising. He's heard reports from farmers about difficulties with their crops.

Moran thinks soybeans may become more abundant than anticipated due to lower fertilizer needs compared to corn. Additionally, some cotton growers have switched to planting soybeans instead of corn to reduce the supply of cotton and boost its price.

The current spread between MAR Soybeans (ZSH27) and the combined price of MAR Corn (ZCH27) and MAR Wheat (ZWH27) is -20.5 cents. Moran suggests selling this spread at -15 cents if it stays below both 14-day and 21-day moving averages.