Soybean prices took off this week and could go up even more.
Marty Hibbs of the Grain Farmers of Ontario says the gain of 60 cents a bushel hit the $10.70 resistance level and the momentum could just be getting started, as there's been little resistance through $11 to $11.40 levels on March's contract.
He notes 3 factors have played into the dramatic rise: last week's WASDE report reducing yield expectations, short covering by hedge funds, and widespread flooding in South America.
Corn prices this week closed above the two-month high of $3.60.
The analyst feels producers may see a small correction, but another close at or near $3.70 should launch prices towards the $3.80 level in the next few months or even weeks.
Hibbs adds wheat prices have behaved exactly as expected.
While the next target is $4.50, prices this week have only been able to get as high as $4.38 and appear to have stalled once more.
