AG TIME SHUT DOWN

John WalshGeneral Commentary

The one thing that can be said of President Trump. He keeps his word. The usual political scenario is inconsistent with his way of doing things. So we go to a shutdown. I dont know if this is important to the AG sector. The beans and soy complex under pressure today. Weather improving in South America. The current prices in beans dont signify a major shift to Corn. My thought is a trade below 2.2-1 ratio is needed for the shifts. That would indicate further weakness. The quiet scenario of african swine fever still expanding. i believe there are real issues. the culling is happening, that means less demand going forward. The Chinese protein demand is contracting for the first time in years. these shifts have major repercussions. It remains my belief the soy will continue under pressure. The oil to me is one I want to watch. It is my thought we may be close to a bottom. In addition oil share may have reason to make slow gains.

The corn came back today. The fundamental picture remains supportive. The demand out of the US has been very good. This window of demand will continue for a bit of time. The feedgrain story looks positive with Russia looking a bit tight. This wheat support could be helpful to the corn market. Look to buy small breaks in corn. there are strategies that could be useful. Give a call to discuss covered strategies. With the Holidays upon us I want to wish all a Merry Christmas. I look forward to the new year.

to discuss strategies,or to talk markets in general  800 993 5449 , jwalsh@walshtrading.com

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