The soy was again under pressure. The thought yesterday was that the oil share may start to rise. The trade today did move that way with oil share closing at 32.4%. The market will need to digest the recent weather in South America which is showing more showers. The question will be what can transpire over the weekend. The meal price near $400.00 was starting to cut into demand. This may allow the oil to take over a leader hip role. This is something not witnessed in some time. Food for thought. This rally puts farm revenue at the highest level since 2013. It is important from this perspective to lock in profit, while still leaving some room for upside moves. The other question to ponder moving forward is how the demand equation will play out from China. The South American growing season is just getting under way. The rally has factored in continual issues there. This remains to be seen. It is prudent to take some risk off the table and lock in some profits for production. As always quantify the risk.
John J. Walsh
President, Walsh Trading, Inc.
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