Soy Market Commentary

John WalshGeneral Commentary, Grains

Commentary:

The soy worked higher today with beans and bean oil both at contract highs. The Argentinian strike has worried the market regarding product availability. The typical strike there does not last long. I say typical, this is obviously an atypical year, so who can predict. The reality of the market, in my opinion, is that the beans are supported by the declining carry. The huge monthly crush that is a record monthly, of late. In addition, the global veg oil market remains on fire. All of these factors can continue to offer support. If the strike ends it is reasonable that the meal market will ease on a relative basis. It is possible for bean oil to continue to work higher. Always quantify a risk perimeter. The long term has presented opportunity to lock up some profit. The question I have is will the Chinese honor the US deals. The Brazilian weather looks good over all. A few areas need more rain. This is not uncommon. The Argentinian weather is not as positive as the Brazilian. The positive here is that the markets are moving. This presents risk but also opportunity. It seems prudent to lock up some profit if you are a producer. 

Be Well

Trade Suggestion(s)
NA today
Risk/Reward
Futures-
Options –

BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
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