The Soy complex was under pressure. The beans and meal were the leaders. The market is responding to a couple things,in my opinion. First, Argentina received rains. Second, the market appears concerned that the Presidents tarrifs could cause some trade issues and possible retaliation. Last, the export sales were smaller than anticipated and that is causing concern. The question is will we see follow through. The funds are holding near record positions. The trade will start to look at the planting intentions. As we have said, the average estimate is looking for a 1-2 million acre increase. Other Thoughts. The Brazilian harvest is moving along. The ability to monetize the crop has improved as internal infrastructure has improved drastically. The US will face stiff competition going forward. The market needs to consider if the Chinese start a campaign to cancel. This would have a short term very negative impact, in my opinion. The long term needs remain, and the US has a strong position. Lets see what transpires overnight. The biggest aspect of the markets now is perception. Bullish or Bearish. The supplies are there. The question is will the funds hold tight or need to sell. As always much risk. Give a call to talk a long term market plan. My concern is the long term. 800 993 5449 jwalsh@walshtrading.com
