GENERAL
The EU it appears is suspending imports from Russia related to CRUDE. The Crude market rallied close to 120 p barrel. The market has since backed off and is 1 per barrel higher. The reality of the global market is that the normal flows are off. This is supportive of crude. In addition the speculative side of the market will continue to support Gas prices. The interest rates will continue to grind higher monthly. It is my thought this may not have the intended effect of reducing inflation for some time. In addition, the markets guided by the Fed are in a difficult position given the debt to GDP. These are important considerations as debt costs. Food for thought.
SOYBEANS
The bean market was higher overnight. The market came under heavy selling pressure. The market anticipates a large planted acreage number today given the weather over the last week. In addition the Brazilian harvest is entering the final phase. This will offer resistance as well. There are obviously many considerations in South America. However, the end of harvest still presents large stocks for a bit. The market will continue to watch the Chinese demand going forward. There are many economic uncertainties given the global geo political landscape.
MEAL / OIL
The oil share is gaining back today. This is based on the crude continuing to rally to new recent highs. In addition, the uncertainty globally of some veg oil availability will potentially keep oil elevated on a relative basis. It is important to note that the current oil share of 48.6% is getting high. All markets have a point. I’m not sure we are there, but watching closely.
BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
800-993-5449
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