SOY
The beans liquidated yet again today. The reasons remain the same. The weather prospects are mostly positive. The bean crop has a long way to go till it needs to be overly worried regarding weather concerns. In addition demand concerns given the overall economic outlook are threatening. This is a real issue in my opinion and something I have written about of late. The Chinese import numbers for 2021 are overstated. The 2022 are overstated as well in my opinion. If realized and a good crop is realized, the market will be over supplied on a global basis. Meal / Oil The breakdown today in the vegoil may be a near term capitulation. While I believe the highs are in, the recent break may be enough. The palm oil market is now rebounding today. This is due to the pent up demand. The break today coupled with the rally in the palm is getting the market more to a reasonable level. It is my hope that we witness a rally in the bean oil. This could allow the oil share to bounce back. In addition, an opportunity to make further sales. The meal market has gained significantly on bean oil of late. I look for a near term reversal. The meal may drift lower to sideways. The Chinese meal demand has yet to materialize which may prove a stabilizing factor in the near term. It is however my belief the macro highs are in the meal market. As always quantify the risk.
BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
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