SOYBEANS
The bean market was under some pressure again today. The main reasons for the decline. The bean sales are slowing. The Chinese purchases overall are lower. In addition, harvest weather looks fairly good overall. The dollar rally has and will have an overall impact on commodities going forward. The dollar rally is sincere and is not a fleeting scenario. The South American plantings are on the upswing at the expense of Corn. If realized the South American crop will be a record and the global carry will approach 100 mmt. The outside concerns remain real. Risk is elevated given the geopolitical concerns.
CORN
The corn is under pressure for a couple reasons today. The harvest weather is beneficial. The carry although not bearish will soon swell with the harvest underway. The progress in my opinion will need to get to 60% to put a harvest low in place. My point, there may be a bit more down. The global scenario will watch the demand and supply side. The decline in global production may well be dialed in for the long run. It is my thought that the corn on a relative basis will gain on beans. As I have mentioned risk is up. Quantify trades.
BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
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