The soy had a healthy rebound today. The leader was the soymeal. The recent trade had meal breaking $40-$50 per ton. I suppose it was time for a rebound. There are some concerns for the soy in my opinion. The largest is the trade talks between the US and China. In addition to this the South American crop is starting to come to market. The US will now start to be out of the export arena for new bean sales. The meal has been weak of late due to the ASF in China. This does seem to be a real issue again and could lead to further weakness after a break. The vegoils took a break today as the palm oil market as well as soy saw weaker prices globally. This market is due a pull back, however, the global fundamentals remain intact at present. The questions I have moving forward, if the Chinese ASF is a sincere problem will the crush continue to operate at or near record? If not, what will happen to bean oil?
The Corn rebounded nicely today. It is important to remember, I think, how far we have rallied. In addition the Chinese have purchased a large amount of US corn this week. This confirms the needs in the near term. It is important to mention I think that the Chinese may need to continue to buy corn going forward. This could prove to be supportive. As always quantify your risk.
BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
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