Commentary:
SOY: The soy was quiet overall, the meal was weaker. The market is watching the weather this weekend. The Pro Farmer tour released their estimates and estimate the US soy yield 8/10ths lower than the last USDA number. This is not overly significant in my opinion. However, if the weather remains dry the last week of the month, and the Chinese buy more beans, then we can see further rally. The longer term aspect of the market should be considered. There is no reason to think the global production will fail to grow. It seems likely that Brazil will continue to plant more soy. The main point of this thought is that if the market works to a higher level, that could present an opportunity to make sales.
CORN: The corn closed a bit higher today. The Pro Farmer tour estimates the current yield 4 bu to the acre less than the last USDA report. This could prove important, and could signal reductions in the next USDA reports. The weather has been less than ideal in areas of Iowa. The other consideration is Ukraine. The current weather conditions there are less than ideal and this has caused a rise in the cash corn price. This will be interesting to see if the Chinese will start to purchase more US corn. They still have concerns there as well with the recent flooding. In addition the size of the stocks. It is my thought that the corn put a low in place at approx 320 dec. The question now is do we have a market in front of us. Quantify your risk.
Trade Suggestion(s)
NA today
Risk/Reward
Futures-
Options –
BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
800-993-5449
312-208-8836
[email protected]
www.walshtrading.com
Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. The information contained on this site is the opinion of the writer or was obtained from sources cited within the commentary. The impact on market prices due to seasonal or market cycles and current news events may already be reflected in market prices. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
All information, communications, publications, and reports, including this specific material, used and distributed by Walsh Trading, Inc. (“WTI”) shall be construed as a solicitation for entering into a derivatives transaction. WTI does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.