Commentary: The soybeans were steady overall. The bean oil was the leader to the upside. The USDA will release the supply and demand on Thursday. There are a couple considerations at present besides the report. The Argentinian, and now the Brazilian producers are having difficulty both moving and harvesting this years production. The interior in some areas is locked down to prevent the spread of the corona virus. This could have a real impact there on production. The near term effect could create a shortage of available soy there. The Brazilian export pace has been about record through March . This will slow considerably. The US could be in a position to garner sales to China in the near term. In addition the South American crops by most accounts are declining in size. This potentially is important for the Thursday report.
John J. Walsh
President, Walsh Trading, Inc.
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.