Commentary:
The soy had a very significant move up today. The move was similar to yesterday. The meal led early. The oil took over and meal failed. The fundamental picture has been supportive. There are some considerations here to take not of. First the beans and meal are not the cheapest in the world at present. This does not mean that the market cant go higher . However, there are considerations at present. The bean oil with this recent surge has moved to a normal historic relationship relative to palm. This could offer some resistance at present. In addition, the bean oil spreads are inverted in a rather steep way. This also may have dialed in some of the bullish factors. Tomorrow will be interesting in my opinion. The short run may run into some resistance. The long run in my opinion may still present some opportunity for bean oil, especially on a relative basis. The Brazilian crop now will start to move through harvest. The question is how much and how soon will exports start to cut into the US export program. Lets see what happens over night.
BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
800-993-5449
312-208-8836
jwalsh@walshtrading.com
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.