Commentary:
The beans saw a fairly volatile trade today. The meal had a significant gain relative to bean oil. The soy in general has had a large appreciation. The conditions tonight dropped 3%. This is significant. However, it should be noted that the average is still 2% below the current conditions. The main point of this is that the bean yield while not increasing, may not be declining as much as the market has dialed in. It is my thought that beans will not trade above $10.00 per bushel. This condition rating may well offer a higher open. It is my belief however that the weather may moderate and offer a sustaining forecast going forward. The market will now start to look at the southern hemisphere for some direction. It is reasonable to presume that the acreage and production can increase without a major weather threat. It is duly noted that weather is very important going forward. The soy however has an ample global supply and will in my opinion need a further weather issue to keep the rally going. Producers should look at this rally as an opportunity for hedges. As always quantify your risk.
Trade Suggestion(s)
NA today
Risk/Reward
Futures-
Options –
BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
800-993-5449
312-208-8836
[email protected]
www.walshtrading.com
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.