The soy was higher and gave up as the day moved by. The products were the leader today based on strong global demand. The crush margins are on fire of late. This will keep an inverse on the board for now. In addition, will keep beans moving to the crusher. There is no doubt that the domestic numbers are indeed friendly. The demand from China has been fantastic. It is my belief the demand for products, especially the veg oils will be strong into the new year. The questions I have are two fold. First, when will Argentina let go of beans. The next is will the Chinese actually take all the beans purchased from the US. The Brazilian crop will be large and this is a consideration. I am looking at $11.00 beans as being a healthy price. I am concerned the fundamentals can change quickly.
Quantify your risk.
John J. Walsh
President, Walsh Trading, Inc.
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