Today there may be some changes to consider. Perhaps they are slow to come, or perhaps they happen quickly. There is a slowdown of Chinese bean imports. The USDA may need to adjust the balance sheet. This would add to the carry over. The Chinese issue with African swine fever continues to spread quietly without much coverage here. I don’t understand this. Having just been in Asia, it is a concern wherever you go in public. This is reducing the demand for protein, especially soymeal. The Chinese have begun importing alternative proteins as well. While this is happening, veg oil imports are on the rise there. The demand for bio fuels is on the rise. This should support bean oil at the current levels. The oil share is at 31.90%. This is the lower end of the range for some time. The main point of today’s thought is, we may be on a macro shift that allows oil share to gain. This would be indicative of a market where oil and or beans gain on the meal, on a relative basis. This is something I think is over due.
To discuss this idea or any other in detail, jwalsh@walshtrading.com or 800 993 5449
” HOW MUCH DOES HE LACK HIMSELF WHO MUST HAVE MANY THINGS ” SEN no Rikyu
BE WELL