The beans were under pressure today. The feature of the day was the domestic basis levels are starting to fade. This indicates enough beans in the pipeline for the time being. The oil share corrected today and settled at approximately 43.78%. This is a reasonable pull back. It is my thought that the bean oil can still trade to the 50% oil share level. Under this thought the market has perhaps corrected enough at present. The global meal market from a cash perspective is a bit heavy. This also should continue to be the case as there are a few reasons meal could remain the weak link overall. As mentioned yesterday, the bean market and spreads are in a position now where they have pulled back enough possibly. The question now is will they challenge the recent highs. It is my thought a weather situation will need to occur for that to happen. At present moisture is ample in most areas. However, there are some areas of concern. Going forward it is my belief oil will lead the complex. The acreage going forward will also be important. It is my belief there will be increases for both beans and corn.
BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
800-993-5449
312-208-8836
jwalsh@walshtrading.com
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