The soy complex witnessed liquidation. More than this though, the markets are looking at the fundamentals. The Chinese purchases, the currency differences, etc, etc, and saying this price may be way too high. The market I want to watch now is meal. Short term sells are here. The question now with this crush pace? How does meal do. I believe it struggles. We are at a watershed point in my opinion. We can shift this soy from a long term bull to a bear in the making. Meaning, just getting started. The soybeans back at $10 will be interesting. Another bounce or plow through. I personally don’t want to hear more of the Chinese story. The demand is stagnating while production has exploded. Demand now is needed.
The Corn was under pressure following beans. Also, good weather has the market a bit defensive. There is still a long growing season. The fundamental outlook is well documented. Watch corn vs beans. This has moved alot of late and may be do a small correction. The US remains in a good position in the near term for business. Quality weather will be needed to keep the Carry from declining.
” RISK COMES FROM NOT KNOWING WHAT YOU ARE DOING ” – WARREN BUFFETT, ELITE INVESTOR
BE WELL