T & K Futures and Options, Inc. Predicts $14 Soybean Futures Prices

Soybean futures prices, like many commodities came crashing down from record highs in 2008. The global credit crisis was the catalyst for the worst deflationary period since the Great Depression. Since then the efforts of governments around the world to fix the financial system may have stopped the decline of the system. This means the stock and commodity markets may have put in a bottom.

Port St. Lucie, FL (PRWEB) May 6, 2009 -- Soybean futures prices, like many commodities came crashing down from record highs in 2008. The global credit crisis was the catalyst for the worst deflationary period since the Great Depression. Since then the efforts of governments around the world to fix the financial system may have stopped the decline of the system. This means the stock and commodity markets may have put in a bottom. "The soybean futures market looks to have bottomed and may be ready to explode to the upside."

The recent moves by many countries to print money to add liquidity to the banking system may be the cause of an inflationary period lasting many years. The US Treasury is planning on printing a trillion new dollars and using them to buy treasuries. This massive printing of new money combined with the printing of new money by many other countries will eventually lead to more money chasing the same commodities causing massive inflation.

Printing more dollars should weaken the currency substantially making US exports cheaper to foreign buyers. Soybean futures prices will benefit greatly with the weakening US Dollar. Visit www.tkfutures.com/soybeans.htm to learn more about soybean futures and options trading.

The recent prospective plantings report by the USDA showed an expected decrease of 7 million acres of all crops. This hints to farmers not planting on the lower grade acreage because the high costs for fertilizer and seeds would offset any profit on the lower yielding acres. This higher production cost and the much lower prices for soybeans make higher soybean acreage unlikely. Soybean futures prices may run back up near last year's highs. Visit www.tkfutures.com/education.htm to learn more.

The weather has been very cooperative in the grain belt in recent years. There has not been a devastating drought in the United States in some time. Argentina and Brazil have not been as lucky and the recent South American drought has greatly limited the yields on soybeans and has already helped push soybean futures prices from $8.50 to above $10 a bushel again. Visit www.tkfutures.com/basics.htm to learn more about the mechanics of soybean futures and options trading.

Higher taxes on South American farmers have caused many farmers to limit soybean acres and hold onto their current supplies in an attempt to raise soybean futures prices. Higher taxes on fuel have also been proposed by the new administration in the United States which may cause farmers to plant even less. Visit www.tkfutures.com/soybean_futures_soybean_options.htm to read more about soybean futures fundamentals that are moving the market.

The author of this article is a 15 year veteran of the soybean futures and options markets and the president of T & K Futures and Options, Inc. Soybean futures and options carry substantial risk of loss and only risk capital should be used. Past performance is not indicative of future results.

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