The soy complex has had a modest bounce over the last week. The time of year, the fund position, and the weather have all been contributing factors. The market may continue to react to wet weather in a friendly fashion in the short run. The long term prognosis remains the same. The global stocks situation remains bearish. The domestic situation remains bearish. The US will continue to make sales however the competition will be fierce. This ultimately will prove to force the market lower. Unless we witness a severe weather problem.
On another note. The Government may slap argentina with dumping biodiesel. If this transpires the vegoil market will heat up domestically. This will also put the oilshare trade I have spoken of to the forefront. The net result will be a solid demand for domestic soybean oil. This will become very exciting if the govt makes this move. in theory the announcement may come as soon as the 8th. However, there are no guarantees. The rallies in the soycomplex need to be viewed as opportunities. enjoy the weekend
be well