Commentary: The soybeans are essentially range bound midway in a 60 cent range. The overall demand picture has weighed this week on beans as well as most markets in the AG. The USDA will release supply and demand estimates next week. The question is how much will they reduce exports due to corona, if at all. Looking forward at some positive, the margins continue to drive a strong crush. There are many private analysts that are reducing the Brazilian soy production. The Chinese should start to honor some purchase agreements. There is so much unknown today. The tech for beans, the market remains below the 14,21 MA. A close above 870 May is needed for a positive in my opinion. The meal has pulled back, as well as the meal spreads. The market will continue to eye the ARG situation to monitor when the meal exports will pick up. The ASF in China needs to be watched as well as they are now attempting to slowly rebuild breeding stock. The Bean oil exhibited some strength this week as crude found a bottom. The Bio market is in some peril with the global slowdown. The tech in bean oil can be watched. A close in May above 27 cents would give an initial buy and could indicate a low is in place. I say could, exercise caution.
Trade Suggestion(s)
NA today
Risk/Reward
Futures-
Options –
BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
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