The soy continues under pressure. The 6th is the deadline for China and the US. This whole scenario has shifted some scenarios into play. First the markets in my opinion are over supplied. Given the weather, the global carry, prices were due this break. Trump will play hard ball if China does not give on the trade imbalance. I really can’t see China allowing this to happen. They seemingly can agree to some terms that would make sense. Anyway. what this does in my opinion is force China to change their protein requirements. In some cases contraction is likely. This ultimately puts the US protein market in a over supplied situation. The meal still remains overvalued in my opinion. Meal is relatively high to beans and oil both. The shortened week will make it a bit more difficult to gain continuity. The weather going forward has been near ideal. The next two months will be important.
The corn was under severe pressure today. It is a bit perplexing to me as I don’t think the fundamentals warrant these prices. The market is very concerned over the Mexican situation and the approx 14 mmt imported there. The Corn conditions remain high and the weather has been ideal. The domestic carry will still be in a reasonable range and at present the US is in a good situation to gain global demand.
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