The usda report today was considered a bit on the bearish side. The carryover grew to 435 mil bu,uo from 420 million. The crush number was raised by 10,but the exports were cut by 25 due to the expected competiton from South America.The global carryover numbers were raised by 2.5 million tons.This puts the global stocks at 82.8 mil mt. A very high stocks to usage from a historic perspective. The market will now have a huge stocks at the same time a large expected increase in planted acres. The demand has remained robust. This will need to continue to be the case . The market will continue to price in todays report.Then shift focus to US planting as well as weather.
The products now will continue to provide much insight into the flat price direction of the market. It is my belief that oil share will ultimately make gains over time. The market is currently at 32-33% oilshare value. The domestic meal basis remains weak as well as much competition globally from competitive meals. We will watch this relationship closely in the future.
enjoy the evening