The beans were pushed higher with fund buying today. The weather outlook in Argentina calls for a drier scenario. As mentioned that’s all that the market needs to see. The funds have made a buy play numerous times during this time period and been right as the carry has declined. In addition the meal has been the leader with a bit of meal oil spreading going on. This of course is keeping oil share under pressure. The market has been disappointed with the biofuel news of late. However the long term looks friendly for vegoils,due to expanding global requirements. The weather is key but it is early. The market will dial the risk in before critical dates. This I think is setting up a nice hedging opportunity. look at the 2018 and 2019 crop years as well. Hopefully 1030-1040 can be achieved. The beans and meal are now well above the 15 and 20 day moving averages which keeps the near term technical friendly. It seems possible that with a drier forecast next week more tech buying can come in.
Be Well