Commentary:
The week ending on a quiet note. The overnight showed a reasonable jump in prices. The day session settles back. The beans were essentially the leader. The vegoils, due a set back. eased a bit. The long term for vegoils remains friendly in my opinion. The weather over the weekend will be important. The market, in my opinion, has dialed in risk premium relative to SA production. It is true that the SA production is critical for the 2021 year. There does however remain a bit of time and the yields can still turn out on the high end of the range. The US domestic carry is tight. The global is ample, even with the draw down in stocks. This is my theory and should be viewed as such. The markets belong where they are. The question now is will they go higher. Food for thought. The bean oil will, in my opinion, become the strongest leg of the complex. It is harder for vegoils to push a big bean rally. The current stocks to usage may suggest we are at a fairly proper price. It is true of course that any changes, be it weather, or political will have an effect on the market. Lets see what happens over the weekend.
Trade Suggestion(s)
NA today
Risk/Reward
Futures-
Options –
BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
800-993-5449
312-208-8836
[email protected]
www.walshtrading.com
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.