The soy complex led by beans and meal continue to make technical advances. The market perhaps is dialing in a potential weather problem in south america early in the calendar. In addition the Chinese buyer has chosen to continue to purchase a record amount of beans, supplied by the US and south America. lets take a look at the fundamental side of the equation. The global balance sheet is expected to swell to a near record carryover of 97.5 mmt. This is up from 54 mmt in 2011/12. Pretty staggering growth. This while the demand remains record. In addition stocks is south America are up 14mmt from one year earlier. In addition global soymeal production will be a record at 234 mmt. The global meal stocks will remain near record high in the coming year. To hurt these numbers to a point that justifies these prices from a historic perspective really is a stretch. But here we are. And that’s what matters. next week harvest will pick up steam and advance significantly. Within two weeks weather improvements are expected in the southern hemisphere. At what point do we say enough? I never thought we could get this high .
Be Well