The Soy complex closed lower again today. Although it was a fairly uneventful session. Tomorrow the USDA will release a monthly report that should offer direction. The South American crop,especially Brazil continues to show a increase in the projected yield. The global supply will prove burdensome in the long run. The US projection for planted acres continues to get larger. How quickly will the southern hemisphere monetize their crop by way of exports. This will be a key question to answer related to price discovery. The stocks to usage are projected to grow to the second largest on record globally. This ultimately should prove as a overhang a cap rallies. how quickly the south american crop is pushed to the global supply chain and how quickly we get planted in the US will dictate the future path of the market
The product value has hovered at appx 32.5-33% oilshare. This relationship may prove to be key in the near term.
be well,
John Walsh
President, Walsh Trading
312-208-8836
jwalsh@walshtrading.com