COMMENTARY:
The soy was sharply higher yet again. The market moved higher throughout the session. The bean oil was again the leader as oil share continues to surge higher. There are a couple reasons as mentioned yesterday for the price increases. First the palm oil has continued to exhibit strength on a lack of production for various reasons. In addition, Indonesia will regulate exports due to tightness, this will be supportive in the near term. In addition, India imports are on the rise. These are important as the South American crush will decline due to a smaller crop. The meal also strengthened flat price today even though oil share is gaining. The meal has been the weak link. This may or may not continue. However, with beans showing strength and the global production in decline, meal also could show further strength. It is important to note in my opinion that the China hog herd is approx even to pre pandemic levels. The amount of feed is important. However, protein needs are there for consideration. The point of all this. Participants want to buy and the current fundamentals are presenting the opportunity.
BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
800-993-5449
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