Ag Commentary

John WalshGrains

The beans and meal again came under pressure. The weather was predicted to remain Hot and Dry in South America going home on Friday. Today that has changed and the market sold off. The fundamentals are bearish. there is little room for argument in my opinion. However the funds are long beans and meal and will want to stay if possible. It is very early in the process down south. Where do we go. If it does turn hot and dry again. One more leg up. However if not lower. This rally may shut off demand, especially in the meal.  The moving averages I watch have turned lower on beans and meal. however not on all the relationships in the crush.  Tough sledding here folks. The global stock piles have and are growing, the reality of betting on the come in the soy will eventually wear thin,again in my opinion.