The Crude market continues to climb. This is driven by the administration policy regarding energy. The perception has changed. The average price of Gas in all 50 states is above $4.00 per gallon. This is a first time ever moment. Diesel prices are at all time highs. The stock market continues to exhibit weakness. Look for more of this given the energy prices as well as interest rates. The interest rates are on a path higher in my opinion. This may be a slow climb, but the path is higher.
SOY
The beans are leading the charge higher. The market is supported by the better weather. The thoughts are that the acreage will not shift to beans given the recent planting increases. The market is looking for good export numbers to China. In addition there is talk of potential hot dry weather. The market in my opinion has reason to be supported. However it is prudent to be aware of the levels we are at. The nearby inverse is paying for old crop production. Take advantage of that. Looking at other factors. The Nopa crush came in at 169.8 mil bu, this is approx 2.5 million less than anticipated. More than a year age however. The crush is expected to be large in the USDA balance sheet. Lets watch this closely. In my opinion the market will experience price volatility. The spreads at present have reason to remain strong until something changes. The oil share rebounded today after meal has had a nice move up this week. I continue to think perhaps meal will continue to gain a bit more relative to oil, exercise caution.
BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
800-993-5449
312-208-8836
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