I have expressed my perplexity at the markets. The Soy is historically high as I see it despite shrinking exports,increasing carry, increasing competition. In addition the african flu continues to spread. Now 3 new issues in Vietnam. The virus was found in dumplings from China. The corn bean ratio remains approx 2.45-1. This does not shift acreage away from beans. The USDA Annual outlook is this week and could offer some insights into the 2019 prospects. I am a broken record , so not much else to add. I still believe the 2019 prices are representing hedging opportunities. The nov at 970 and abouve should be sold.
The corn in my opinion represents some value. We again are testing the low end of the range. The market in my opinion should hold. The global feed grain situation offers support. The US remains competitive in wheat, corn , ethenol. The market especially corn cant afford to 1) loose acres to beans or other crops. 2) A poor strt to US planting. Already close to us. The prospect for corn in my opinion remains friendly. As always quantify your risk.
to discuss the markets, or to talk about any posts 800 993 5449 jwalsh@walshtrading.com
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