Global Shifts

John WalshGeneral Commentary

There are potentially some shifts going on globally that could have lasting implications. The macro outlook in oilseeds presents a very competitive scenario. The crush rate should prove to do two things. The first is a pressure on crushing margins. The second is a environment where oil share gains. This week oilshare hovered in the 33% level. The long term shows large oil demand. With a scenario of global competitive meal pricing. This is true also because China has opened its markets to competitive meals. The Black Sea will look to gain market share. look for pull backs in oil share as a opportunity. As always quantify your risk.

The feedgrains could present a long term opportunity. Early yields indicate loss relative to a year ago. This may not be priced in. The southern hemisphere may have lost corn acres to beans. Last, it appears China is depleting reserves. All this may spell opportunity