The soy was under some pressure led by meal. Are we on the shift I have been speaking of for some time. Remains to be seen. However there are many things to consider. the world as we all know is awash in beans. Not because of trump. Because we have doubled carryovers in three years in spite of record demand. Given the bean scenario the availability to crush is great. Given margins this should continue to be the case. Now, China due to economic uncertainty,and african swine flu concerns,and a pork sector that was in the red. Is cutting back. Again not because of trump. But because they were overproducing and prices were suffering. It is my belief China is in stagnation,and this could be the new norm. Now it appears Europe has identified a single pig with the virus. If this spreads there is a game changer. I say if,no hype just thoughts and concern. In addition to all this the Chinese are in negotiations to purchase protein from various countries. All these could be the pieces to a bear meal market. Stay tuned for developments next week.
The corn held firm. The wheat rebounded. The wasde report perhaps put a near term low in place. Some field reports are not showing the same yields as the usda. We must trade the numbers but look for opportunities. The world will need the US corn balance sheet for a bit of time. Where is the low. Not sure. However quantify the risk and look at opportunities from the long side. Any problems in the southern hemisphere couls assist a friendly scenario.
800 993 5449 jwalsh@walshtrading.com to discuss some long term potential opportunities
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