SOY
The Bean market rebounded today. The advance was led by meal. The meal market is finding interest for a couple reasons. The cost relative to corn got cheap. In addition the oil share is correcting and the meal is becoming a bit more of the leader. The beans are getting a bid also due to weather concerns. This is way premature in my humble opinion. The crop conditions at present are very strong. The question going forward is weather. In addition demand. The South American crops were a bit bigger. However the US has been the key of late. The beans from Brazil at present are a bit cheaper. In my opinion the old crop remains tight. The new crop is a very different animal. With a good crop we are heading to a large global surplus while the US market becomes amply satisfied.
CORN
The corn had a nice rally today and the spreads bounced back as well. The nearby corn basis in certain areas is as much as 2.00 over July at present. This is significant and real. The weather gave support today, as well as concerns over a few acres lost in the northern areas. The corn in my opinion can stay supported here based on the near term fundamentals. If there are weather issues the carry can become very tight quickly. I continue to watch the corn bean ratio very closely.
BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
800-993-5449
312-208-8836
jwalsh@walshtrading.com
www.walshtrading.com
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