The Beans and Meal were under pressure. There is a ample amount of product available. There are a couple interesting trends that may be worth consideration. The Chinese Hog sector appears to have reached a saturation point. It appears they are in the process of halting expansion. Is it the concern over bean imports,perhaps, or perhaps we have come so far in the last decade and such growth,that the market needs to stagnate. If one looks at the global production over the last decade, it has been exceptional in every sector. It appears to me we are reaching a global saturation point where we are overproducing and expecting more and more demand. All this and we continue to add to carryovers. Demand is strong but it needs to be. It is my opinion we have reached a unsustainable expectation in the soy complex. Without a crop loss we will continue to grow domestic stocks, In addition push the global stocks over 100 mmt. These are big numbers. If my theory is correct we will have a major shift in beans and meal. They will become the weaker aspect of the complex on a relative basis. There are some neat scenarios that could play out. At present crush margins are historically high, the beans and meal spreads still hold inverses. For specific long term ideas feel free to give a call. 800 993 5449 or jwalsh@walshtrading.com
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