SOY: The soy was under pressure. There are some considerations here. The weather is important this month especially for beans. There has been some dryness, however the bean yields are currently not reflecting this. The Pro Farmer tour is indicating very positive results thus far. It is possible to continue to add to the carry if the weather finishes in a positive way end of August. The friendly part of the market is that the Chinese will continue to need US beans for a bit more time. The tech level of 915 is key. If the market can trade through the 915 level again there could be more tech follow through. It is my thought the long term fundamentals do not support this. It seems prudent to use further rallies as hedging opportunities.
CORN: The corn has reacted to the recent ratings from Pro Farmer and has pulled back 10 cents. It is my thought that the next days will put the tour into Iowa, this will start to show a reduction in yields. The recent weather has been concerning as well as last weeks high winds destroyed many a field. This destruction in my opinion could prove to be market shifting. If the US realizes the recent crop is 500-600 mil bu less, this could change the corn market over the next 12 months. The Chinese will need to purchase more corn through the next year as well.
John J. Walsh
President, Walsh Trading, Inc.
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