The markets in general are showing support. The soy is moderately higher led by vegoils. As discussed this could be a long term change. Long term means 3-6 months. There are many positive aspects offering optimism. The most important is probably the China trade deal. There exists a ample supply of soy globally. However, the Chinese under this deal may be forced to buy US beans. This could , I say could, offer a short term kick to bean prices . This would ultimately push global demand to cheaper SA product. It is my contention the global demand structure,based on China ASF, is in a contraction mode. The worst is probably over. However, the growth may take some time. The whole puzzle could get very interesting. Especially because the SA may Use more of their own bean supply. The Brazilian for bio fuel. The Argentinian due to changes in the tax. This all would spell a issue and increase meal exports. In addition Russia and Ukraine are exporting alot of protein due to the expansion of various seeds. All this could point to a weaker meal price relative to vegoils. The new year will be volatile. Heed the thought. Risk as well as reward potential are on the rise.
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