COMMENTARY: This is more of a general commentary today regarding the AG markets. The soy today had a reasonable move up. This at present is driven by the global veg oil strength. The July oil share will expire tomorrow at 48-50%. The Aug in my opinion will trade to 50-52%. This is fueled by the tight Canola crop in Canada. The lack of growth thus far in Palm Oil production. In addition, the larger use of Bio in South America, with the Brazilian admixture moving to 12% in Aug. The one piece of the puzzle I continue to monitor is the Parana river. If this shuts down, I have no predictions either way. It is a risky situation that would if a reality could introduce extreme volatility. As always quantify the risk. There exists unprecedented risk in the markets. It is my thought the volatility will be with us for some time. As mentioned yesterday, the old and new crop may very well represent different risk/opportunities in the next few months. The weather focus will again heat up now as corn enters critical pollination in July, and beans are close in late July /Aug. Quantify your risk.
BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
800-993-5449
312-208-8836
jwalsh@walshtrading.com
www.walshtrading.com
Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. The information contained on this site is the opinion of the writer or was obtained from sources cited within the commentary. The impact on market prices due to seasonal or market cycles and current news events may already be reflected in market prices. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
All information, communications, publications, and reports, including this specific material, used and distributed by Walsh Trading, Inc. (“WTI”) shall be construed as a solicitation for entering into a derivatives transaction. WTI does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.