The soy today came under heavy pressure. The weakness was led by the meal market. The USDA report did not reduce the domestic carry. In addition, the global carry increased a bit. The Chinese ASF is getting worse by many accounts. The bean sales have been terrific for the past 5-6 months. This however is most likely coming to an end with the Brazilian crop coming on line. In addition, the Argentinian crop, while a bit smaller, will be monetized through sales of more products this year. It appears meal has a tougher road. The vegoil market globally remains stout. This can continue for another 30 days or so in my opinion. The palm oil production should ease some tightness later in the year. Not at present however. Hence the big inverses. A couple thoughts. The bean oil spreads may stay strong. The meal spreads are liquidating and may continue. The bean spreads somewhat flat at present.
John J. Walsh
President, Walsh Trading, Inc.
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