The Easter Weekend arrives in time to give the markets a bit of a breather. The USDA report put a short term low in place. Why? Good question. Perhaps it is the time of year. Perhaps the market has bounced after the last few years, and this is a habit. Whatever the reason we cant fight the tape. Patience is a must. the fundamentals remain Bearish by most accounts. The market will now shift to domestic weather. The South American harvest pace has been fairly swift. The yields are plentiful. The export availability will be high. Not only from Brazil. The smaller surrounding countries have witnessed a abundant harvest. The one positive that has remained a constant is the Chinese demand. This appears to be securely in place and allows the bulls a reason to buy.
The domestic acres are on the rise. A nice weather scenario will push the domestic and global stocks to usage to unseen levels over the past decade. The funds remain long the beans and meal. The current oilshare is back to approx. 32.7% . The global meal market remains soft. The domestic basis the widest in ten years for this time period. We will see how all this plays out.
Please enjoy the Long Holiday Weekend.
Be Well