COMMENTARY:
SOY
BEANS – The beans again were under pressure. The reasons remain the same. The export picture is questionable with the Brazilian prices cheaper and offered earlier than typical. This has the US window in a bit of potential jeopardy. In addition the weather has been beneficial to the planted acres in the southern hemisphere. This is leading to hedge sales already. This is important as the market is viewed as expensive in the world. It is my thought that the US carry will eventually be 400 million bu. That is a very ample amount. The global carry 105 – 107 mmt. That is a very ample amount and puts the uS as a price taker. The markets may be due a bounce. It is my thought those present selling opportunities.
CORN – The corn was under a bit of pressure. There are really a couple reasons. The wheat was lower and this could have been influential. The overall weakness this week is weighing. It is my thought that the current structure is at a interesting point. The corn demand from ethanol is fantastic and should continue to be. The production however may increase a bit and put the domestic carry in a little bit less friendly light. It is my belief however that corn will continue to gain on beans.
Quantify your risk.
BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
800-993-5449
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jwalsh@walshtrading.com
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