Commentary: The soy has been led higher by the old crop. Both beans and meal have been the leaders while the oil share has lost approx 6% in the past weeks. The catalyst for the strength has been concern over the recent weather in South America that has caused reductions in crop size. In addition, for meal, concerns due to Covid and government-imposed taxes that ARG will not export the same amounts of meal. The overall weakness in Bio has concerns over the crush rate in general. This had led to an overall gain in the meal share of the crush. The Chinese are now coming back on line after the slowdowns due to the Covid virus. It is probable that the Chinese could start purchases of US beans in the coming weeks. This, if realized, could give beans a further rally through $9.00 to the insurance level of $9.17-$9.20 level. The USDA will release acreage and stock estimates tomorrow.
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NA today
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BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
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