Commentary:
The soy is under a bit of pressure. The meal has eased with weakness in beans. As mentioned last week the oil share has settled at approximately 32%. The weather has been positive for harvest. There is currently some small delays due to moisture. This however looks to be short lived. The question now will be if the yields are smaller than the last USDA report. The demand from China will be an important consideration as well. The overall purchases from China have been large and may continue if the Brazilian remains sold out. The Corn market acted very well today despite the lower start. The concern for corn is due to La Nina. The question is if dryness remains through South America. If so the planting delays for beans will affect the Safrinha corn crop. This would have a lasting impact from a global perspective and could give the corn the opportunity for further advancement. The funds have built significant positions in the Ag sector. The question now is will they continue to add and play defense.
Trade Suggestion(s)
NA today
Risk/Reward
Futures-
Options –
BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
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