The Soy complex started the shortened week on a higher note. This strength was led by the meal market today as oilshare gave back approx. 1%. The market advanced today on ideas of dryness to end the growing season. Also, potential rain may hit the delta right before harvest due to the hurricane making landfall this Wednesday. This rally may prove to be the best opportunity right before the harvest starts to roll. The global supply remains more than adequate. Infact approaching records. In addition the USDA most likely wont deviate much from last months production estimates. This will keep the domestic carryover between 420-500 million bushels, depending on the demand. A healthy sum indeed. Looking to the future. The global mael market remains soft overall. This wont change much especially at prices above 300 per ton. While the global vegoil market looks fairly well supported due to global fundamentals solidly intact. Look for the rally in beans to present hedging opportunitie before the start of the southern hemisphere growing season. As always quantify your risk.
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