AG
Soy
The soy was sharply higher last night, led again by beans and bean oil. The trade today brought about a two sided affair. There are some real considerations here. The vegoil market is led by the demand for bio fuel . This is constant . The domestic market remains supported and tight . The meal on the other hand is not following . The oil share is at or near 48% . This is my thought for some time and I still look for 50% oil share or better . The weather in the upper part of the country remains a real concern . This looks to be the case for the next week or two . If true the market will potentially have further upside . The crop conditions tonight should confirm some issues starting .
Corn
The nearby corn and corn spreads were under pressure today. Look for a bit more of this activity. The old crop story has faded a bit with farmers moving some grain . The focus will now rightly shift to the new crop . The weather will remain key . The carry offers little opportunity for a error this growing season . The Brazilian second crop is already under the recent estimates . Look for new crop hedging opportunities through June . The question now is how long the weather will remain dry . How much corn will China need ?
BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
800-993-5449
312-208-8836
jwalsh@walshtrading.com
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