Commentary: The beans were up today following some strength in outside markets. In addition the Chinese made a purchase of 200t tn. This proved to get a bit of excitement going that the Chinese would continue to follow through on the trade agreement. It seems logical that given the covid they have much more reason to follow through on any agreements they have made. The SA crops have made good harvest progress. The Brazilian provided much in the way of exports over the last two months. The US planting window has just opened, stay tuned for any potential issue. The meal was under some pressure today over concerns with the shut downs in slaughter plants. The protein demand could potentially witness a decline over the long term depending on how animal numbers are handled. This while crush margins support a high crush pace which could potentially oversupply the meal market. The soy oil today was able to rebound with the crude market. There has been a strong correlation of late due to bio fuels. There remains structural problems for vegoils in the near term. However, the long term could be more friendly as the Palm market could witness some supply concerns over the covid situation.
Trade Suggestion(s)
NA today
Risk/Reward
Futures-
Options –
BE WELL,
John J. Walsh
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