The weekend bore no fruit with the US and China. The beat goes on. It has been my belief that beans are overvalued. We now have moved back to $10.00 This has been a key level and may offer support given the early date on the calendar. The planting has been swift. The market will eye the acreage total at month end. It is predicted by many that the USDA will add 500t to 1 mil more acres. It is my belief this could prove accurate. There are many questions left to answer. What is the ramification of the strikes in south America? The Brazilian chicken industry? The Chinese hog industry? I stand on my thoughts that beans are overvalued. We may see some meal pricing here. However, the cash says we have plenty of everything. The game has changed. When do we see a convergence of futures to a relative cash price? Perhaps those days are gone.
The Corn came under pressure yet again. The global stocks have tightened. The market remains concerned over the lack of issue resolution. The demand will remain solid. The market will now await an acreage number and any weather issues. A 1 percent decline in ratings today may be good for a small bounce on Tuesday. I remain a bit friendly corn and think $4.00 may be a level that will hold till a confirmation of production is confirmed.
Feel free to discuss any opportunities 800 993 5449 or jwalsh@walshtrading.com