Commentary:
SOY: The beans were able to show gains again today. The bean oil was the strongest aspect of the complex today. The market in my opinion may have topped this week. The funds are now holding a sizable long position in beans. The weather has moderated, and the later planted beans will be assisted. The yield may have been edged a bit, however, the bean yield and crop are very sizable. The domestic carry is more than ample, as well as the global. The bean oil in my opinion may also have a high in place. At least for the time being. If a high is in place then the market may start a correction into the harvest.
CORN: The corn in my opinion may be able to fare better than the soy complex going forward. The funds remain net short. The rains at this point do little to assist the corn crop, by many accounts. The Chinese continue to buy corn. The concerns there may be very real and could offer support. It is my opinion that pull backs in corn offer opportunity, quantified properly. It is also my thought that the spreads, such as march july could present value. The risk reward needs to be considered depending on the accounts value and goals.
Trade Suggestion(s)
NA today
Risk/Reward
Futures-
Options –
BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
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