Ag Commentary

John WalshGrains

The beans were weaker today. The weather is improving. The south American crop is coming in. The overall size of the production has been discussed. This will continue to overhang the market in the long run. Rallies are always possible but should be looked at as a opportunity. The Fund have apparently switched beans from long to short. The meal appears the funds are still long. As mentioned the oil share may present a long term opportunity. The global oil vs meal from a fundamental perspective makes some sense. We are early in the domestic growing season, volatility will be a fact of the market. We need to attempt to use the volatility as a opportunity, while always quantifying our risk. The market should work lower over the long run, unless a weather event is experienced.

 

Be Well