The soy rebounded sharply today. This was due given the recent break. the market will have concerns over the trade wars going forward. There still is a underlying theme that there is a friendly market out there. My report yesterday suggested to take defense up with profits on net short positions. It is possible to rally into the USDA report next week. This in my opinion would present a opportunity. It is still my belief the lows for the year are not yet in place, unless a weather change takes place. I would like to see a rally to 930-940 july. This presents a opportunity to make sales if achieved. Looking at the long term. A shift is underway in China. They are changing there protein sources around. The meal in my opinion stands to loose the most in the long run. After the current rally is over. Patience is important at present to let this set up. The current SA situation will encourage the farmer there to continue to expand bean acres. The premium received to US beans will make it difficult to avoid.Lets see what next week brings.
The corn was a dull quiet trade. The domestic weather has a blanket over the market. Acreage next week will be key. It remains my contention corn is undervalued relative to its fundamentals. A resolution to the current NAFTA situation would be helpful. The global weather has been and remains a issue, as I have stated for some time. It appears the feedgrains will have a season or relative tightness. The US stocks draw down has been real. Comments want to second guess the global draw down. I question that line of thinking. The numbers are what we have to trade today. The US exports should remain strong. It is my belief corn is in the lower end of a range.
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