REASONS BEHIND 2020-21 BULL RUNS: UEMAND AND FEAR.

摘要

The bull run in the grain markets started in August. That's when nearby corn futures bottomed at $3.07 and nearby soybean futures bottomed at $8.70. From that low, corn and soybean prices more than doubled by the second quarter of 2021. I have watchedmore than 30 bull and bear markets in the past 40 plus years, and this was one of the most exciting.Why do we get bull runs? The No. 1 reason: Demand. In a demand-driven bull market, you'll see several developments. First, the nearby contract will gain on the further-out contracts. (This is called bull spreading.) Another characteristic is firming cash basis bids. This usually results in cash bids going to a premium to the grain bids out 30 to 60 days. In other words, cash buyers want your grain now, not later.