Soy Complex

John WalshGrains

The Beans and Meal were the downside leaders today. The Long term fundamentals remain bearish. The weather in South America has moderated.The harvest progress out of Brazil has been rapid with the pace surpassing 50%. This will certainly make available more beans to the global market. Of concern is the large amount of unshipped beans out of the US. The last usda report showed a reduction in exports. Perhaps further reductions are possible.

Looking forward the relationship between and oil will be a crucial one.This relationship will dictate crush pace and ultimately meal and oil stocks. This will be important in the medium to long term.The global oilseed situation is friendly as global stocks are in a rebuilding period and stocks remain depleated.The meal market on the other,has a large amount of competition from competitive meals. This relationship may have room to move. After todays close further selling may be at hand. The funds remain long a reasonable amount of beans.

Quantify your risk. Always