The soy complex is in a key area at present. The weather still is a concern in South America. however the sheer amount of beans in the world is massive. This ultimately will be the driving factor behind price movement. The meal and beans have been the weakest aspect of the complex of late with oil share rallying to 34.3 %. This may be just the beginning of a significant move. The fundamentals justify a lower price. At present the Brazilian bean acres are on the rise due to corn losses. The weather was key there. Domestically looking to next year we will see bean acres over corn, perhaps by as much as 3-4 million acres. 92-88, something like that. This will have large ramifications on bean prices. The technical picture has beans meal and oil in down markets on the daily and the weekly timeframes. this should continue to offer pressure especially in meal where the funds are still long. At present I am watching the July-nov bean spreads, july- dec meal spreads , The crush outright and the oil share. This year has some real opportunities if played properly.
Be Well