Commentary: The beans and meal were both under pressure. The reality of the market is an ample global supply of beans. The domestic carry is ample. The question is will bean acres remain constant. The planting pace is quick thus far. This looks true for both beans and corn. The Chinese are due in for US beans. The Brazilian dominated the last couple of months. The Arg has been a reluctant seller. The global currency relationships make beans more profitable to the S A farmer. A near term round of purchases could give the market a reasonable bounce. The reality is a structural change may be needed for a lasting impact. The meal is weak and has been weak. The oil share has not made gains before today however. The global meat scenario could prove to be a problem for protein. The current high crush margins could continue to pressure the meal prices. This is true both domestic market and globally. The vegoil market has structural issues with the bio fuel collapse. The question will be to what extent palm production is limited due to corona, if at all. In the end the market is in a once in a life time shock. This will prove difficult to navigate at best.
John J. Walsh
President, Walsh Trading, Inc.
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