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.
John J. Walsh
President, Walsh Trading, Inc.
Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. The information contained on this site is the opinion of the writer or was obtained from sources cited within the commentary. The impact on market prices due to seasonal or market cycles and current news events may already be reflected in market prices. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
All information, communications, publications, and reports, including this specific material, used and distributed by Walsh Trading, Inc. (“WTI”) shall be construed as a solicitation for entering into a derivatives transaction. WTI does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.