SOY
The beans were again under pressure. The weather has changed and fewer dry spots have the market in retreat. The market has failed a bit now and probably has dialed in much of the bearishness for the time being. I, however, remain bearish from a macro stand point. I am watching the AUG bean inverse to see if this eases as nearby basis levels appear to be declining. The global market seems to be looking to next year for purchases. MEAL/OIL – The oilshare again under big pressure. The Aug oil share at approx 40.5% This is a bit higher than the July lows but getting there. The palm was up yesterday as demand starts to show up. The bean oil is acting as though it wants to get to 57-58 cents in Aug. That would put oil share sub 40%. The meal in the nearby remains supported as the South American crush slows. This would keep nearby meal supported for the time being in my opinion. The meal remains the leader on the board and perhaps a bit more to go.
CORN
The corn was lower today but nominally so. I have said it is my belief the highs are in. However the rate of decline appears to be slowing and perhaps the bearish tilt is dialed in. The pollination may be spread out which could keep some premium in the market until the crop is fully known. At present the weather has moderated and looks good enough to maintain current ratings.
BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
800-993-5449
312-208-8836
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