The summer markets are kicking off. Along with the time of year comes wild predictions of drought and famine. Well, drought anyway. This year will be no exception. They are already starting. I would like to say It is my belief we need to view rallies as opportunities. this may sound like a broken record. To have a drought crippling event is rare. Last year we had dryness. Severe in beans and we still had good crops. Lets spend the summer seeking opportunities when the price gets out of whack. It is my contention we are in the midst of a growth in production for soy that will take carry overs to unprecedented levels. Now, we will have rallies, and perhaps rallies that move fast and furious. These will be hedging opportunities. I am concerned over the slowing of the Brazilian poultry and the Chinese hog markets. This could have real ramifications for the protein markets. It is my belief that the US and China will find middle ground. It is in both parties interest. lets see what tomorrow brings
The Corn has potentially bottomed. As I have said the corn could still see some fireworks with any glitch. The concern today is the tariff’s to Mexico. Will they slow corn purchases. Unlikely given the growth in the animal sectors. In addition the South American corn is lacking this year. The US is in a strong position at present it would appear. It is possible to quantify a risk reward to the upside at present.
For any insights feel free to give a call , thank You for the nice feed back and commentary. 800 993 5449 jwalsh@walshtrading.com
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