AG THOUGHTS

John WalshGeneral Commentary

It is very difficult to find what the market is focused on. The soybeans are approx 50 cents off there high. The soyoil has given back approx 50% of its recent rally. The oilshare has gone from 35.2 to 33.2. This while global vegoils have been rallying. The meal continues to trade back and forth. Looking forward, there are still 10-11 million bean acres unharvested. This may mean nothing in the end. However , it must be watched at present. The SA plantings are moving along fine and the moisture situation is at present ample. There remains a long growing season and things can change. The global driver in my opinion will be the demand for vegoils. This is due because the personal and industrial use is very high. This trend could continue into the new year IMO . The Brazilians are increasing the admixture rates. And will continue to do so. This theory unfortunately has not had the effect on the market I believe it could. The oilshare IMO could still move to 35.7-36%. This would not be historically high. The remaining piece of the puzzle is when The US and China will sign a deal and what quantities of each commodity will be purchased. The markets are presenting much risk and chop, trade accordingly.

BE WELL