Soy Market Commentary

walshtrading General Commentary, Grains Leave a Comment

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.

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Your email address will not be published.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 *