Ag Market Commentary

walshtrading General Commentary, Grains Leave a Comment

The markets were two sided today. There are some considerations at present in my opinion. First, the Brazilian crop will start to be marketed. This will not add to the US carry obviously. But it will knock the US out of contention in the export arena. This could limit further gains in the short term. It is my thought that the meal may continue to stay under some pressure. The July Dec spread continue to erode. The veg oil market on the other hand has been on fire. This is true for both flat price and the spreads continue to gain. It is my thought this can continue a bit longer. Exercise caution as always. The bean oil continues to be supported due to competitive oil strength. In addition, the growth with global bio fuels. The bean oil spreads are really inverted. This is a sign of potentially continued strength.

The Corn market continues to act strong. The concerns over the safrihna crop is real. There is a reason to believe the yields could come in under trend. In addition, the Chinese bought a respectable amount of US corn. This is a boost to the market and may indicate Chinas continued need for corn. The July Dec corn spreads continue to rebound from recent lows. The question now will be if the spread will climb all the way back to highs. As always quantify your risk.

John J. Walsh
President, Walsh Trading, Inc.

Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.​

Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. The information contained on this site is the opinion of the writer or was obtained from sources cited within the commentary. The impact on market prices due to seasonal or market cycles and current news events may already be reflected in market prices. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.​

All information, communications, publications, and reports, including this specific material, used and distributed by Walsh Trading, Inc. (“WTI”) shall be construed as a solicitation for entering into a derivatives transaction. WTI does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.

Leave a Reply

Your email address will not be published. Required fields are marked *