Commentary: The beans remain mid range of the last months trade. The fundamentals are not overly friendly given the global carry. However, the domestic numbers have been supportive. It is possible the Chinese start buying US beans going forward. The Brazilian has dominated over the last couple of months. This month as well. The pace is not sustainable with production numbers coming down. The US could now see a supportive spree of buying. This could give the beans an opportunity to still rally back to the 9.00 level. With respect to the products. The meal has lost both flat price and relative to oil. The rally was driven by concerns over Argentina and the crush rate there. These fears have been laid to rest. The price has broken as well as the spreads. The Arg crush looks to be back moving. This will create competition for the US meal. The US crush will continue to run near record. This will put pressure on domestic meal prices. The vegoil is complicated. The market has demand issues due to bio fuel demand. However, the global palm oil output could be in jeopardy due to the Covid lockdowns.
John J. Walsh
President, Walsh Trading, Inc.
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