General Ag Market Commentary

walshtrading General Commentary, Grains Leave a Comment

The markets traded both sides today and through the night trade. The weather is creating some concern for both beans and corn. There are some dry spots, the rain is hit and miss etc. This is certainly important and needs to be watched. What is concerning me however, at present, is more political and changing. First, the visit by Pelosi could become problematic. There are many ways to wage war. It is clear to me we are currently in a currency war globally. Especially as it relates to East vs West. It is very logical to me that China could very well shift away from US purchases. This would in my opinion affect beans the most. The Brazilian is somewhat sold out. However, the Argentinean has a lot of bean stocks. They have been holding due to inflation. It is coincidence that the ARG govt has hired a new economic minister, tasked with getting beans moving. There appears to be a plan in place to do just that. If this transpires it could mean a lot of beans going to China while the US sits. I’m not saying this is a sure thing. However, if it does happen look for beans to start to decline. In addition, it would buy the World and China time to wait for what could be a record South American crop. As I have said in my opinion the highs are in. The recent rally last week presented a hedging opportunity. The next two days will prove important.  


John J. Walsh
President, Walsh Trading, Inc.

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