The market was very quiet today. The weather is the focus. The market is at a key level, especially as it relates to beans and meal. Will the funds now add to short beans for the duration of the season, or will weather have enough of a impact to get them to cover. The fundamentals are deeply trenched with a oversupplied situation. The exports from Brazil are estimated to be a record for April. This trend should continue with the exceptional yields received. The one constant the Bull camp leans on is the demand, especially from China. No doubt important ? But, take this out of the equation and the market has real problems. The oil share is hovering above 33%. This is a key area as well. New lows and oil share most probably gains. The fundamentals are intact for a reasonable move in share. This however remains to be seen. Rallies from here if they do materialize need to be viewed as a opportunity.
Corn
The feedgrains in general are catching a little buying on domestic weather concerns. It would be nice to see a corn rally into planting. It is important to note the global availability remains stout. The long term projections bode well for the supply side. The south American supply as well as the black sea will be readily available for long term feed grain supply growth. look for spring rallies as a opportunity. It is early on the calendar. The corn has been in a approx. $330-$430 range for quite some time. There appears at present no reason to change these expectations.
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