The soy had a nice rebound today. The market has pulled back and this seemed like a day of bottom picking. The next move going forward will be predicated on the weather. The recent rains in South America have shown significant improvement. However, there remains dry areas that will start to feel stress over the next 1-3 weeks. This could be key to both production and price discovery. The global vegoil markets remain well supported based on fundamentals. From an historic perspective it is difficult for oil to support the beans. The point of this is if the oil share does gain, which happens to be my thought, then it is difficult for beans to remain as strong as if the meal were the leader. It is my suggestion as well to take advantage of the significant price move we have witnessed of late if you are a producer. I have no thoughts on large ideas. The market will be driven by weather. Look for quantifiable trades in the relationships and spreads.
John J. Walsh
President, Walsh Trading, Inc.
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