Ag Outlook

John WalshGrains

The market broke today after a bit of strength  through the week. The USDA report next Thursday will be the next driving force. The private estimates this week continue to confirm a reasonable yield expectation. There really should be nomajor surprises. I believe the bulls have a hard road in the beans. The dollar strength of late. The currency moves in south America, all signal a tough export market for beans. In addition it looks as though the Chinese will ease the restrictions on ddg’s. This will not bode well for meal. The meal board is already out of whack in relation to the cash.  The southern hemisphere is off to a reasonable start. It is early though. A good crop there and we are looking at 100 mln ton global carry. This with 500-600 mil bu in the US. Ample global supply.

Rallies are opportunities for the producer. Quantify your risk

 

Be Well