AG TIME looking out

John WalshGeneral Commentary

The market was quiet. Looking down the road. The market can bounce some more here if the funds want to buy, for whatever reason they do. However the soy complex, especially beans and meal are fighting a structural problem in my opinion. The beans are just over supplied. Regardless of the draw down in the South American crop. The lack of US exports could indicate a further increase to the carry over. In addition the the Chinese are cutting there protein demand. In addition they are using alternative meals. this is a structural change. The crush pace continues at a fast clip. The margins are positive. This ultimately should weigh on meal flat price. ( remains to be seen ). I remain longer term bearish margins, bearish meal,and friendly oil share on a relative basis. Look for rallies in the beans to create hedging opportunities.

The Corn market is presenting some possible opportunities. I perceive a basing type of trade. The Corn is supported by competitive US cash prices. In addition concerns over the Brazilian crop. I also want to watch the US acreage situation. The current price relationships do not favor planting more corn. If this is the case then corn has a ample supply. However no room for error. This could offer the market reason to appreciate. It certainly will keep the market on its toes for any spring related issues. Look to be long corn. For specific future and option ideas give a call. As always quantify your risk. There are no guarantees. Only death and taxes.

To discuss any market related ideas, 800 993 5449 , jwalsh@walshtrading.com My thought is to look for long term opportunities and quantify a risk parameter.

” TAKE TIME TO DELIBERATE, BUT WHEN THE TIME FOR ACTION ARRIVES, STOP THINKING AND GO IN, ANDREW JACKSON