The soy is rallying based on theoretical dryness in South America. It is a opportunity to end the year in my opinion. This rally is based on hope and fund buying to even up a bit here. The fundamentals are ever growing more bearish. The global stocks are approaching 100 million tons. That’s right 100 million tons. The private SA analysts are expecting a larger Brazilian crop than the US has plugged in is will push the stocks to a very large number. Another by product will be a blow to the US export pace. In addition the crush rates globally will expand the meal available. This rally is not helping meal demand. The main point is use this rally to catch up on old crop sales and make new crop sales as we go. This price on the board will look rich in the long run. As always quantify the risk.
happy Holidays and a prosperous NEW YEAR