Ag Commentary

John WalshGrains

The soy complex led by beans and meal moved higher today. Concerns over the south American weather, and some disbelief regarding US yields helped underpin.

This remains a bizzare year. The market wants to second guess the usda numbers even though the field reports confirm the overall accuracy. The thought is that if the govt is off by 1.5 bu to theacre, the carry could be 250-285 mil bu. This would prove to be a bit tight. however the data points to the opposite. Nice yields coming in across the board. Perhaps not the records we have seen last year,but solid. The focus and speculation will now shift to the southern hemisphere. The market wants to believe there is trouble abound there as well. It remains early. there are always trouble spots in countries as vast as the subjects in question. It is the overall average that counts. In closing, be patient if the market rallies into the report next Tuesday it should be a opportunity

be well