Quiet finish to the days activity. Markets were up overnight and early, then settled back. The fundamentals remain in tact. The questions remain regarding the south American weather. The southern area of Brazil looks a bit to wet. The conclusion being drawn by some is the wet will 1) cause delays 2) promote fungus issues there and potentially neighboring countries. Looks like a long stretch to find a bull story. However, the markets are dialing risk in quickly and in a more progressive way than before, it appears. I remain a bit perplexed and in times like this look for opportunities in the extremes. Hedgers use further bean rallies to sell both old and new crop. The long term outlook for the market is a bit ominous unless we witness a major weather problem. Just a observation. The board price and cash price really don’t seem to correlate like years gone by.
Be Well