COMMENTARY: The markets today traded both sides. This may be how we settle in for a minute. In this type of environment, the spreads can at times be the best option. The most important feature to me today was that oil share had a significant rebound. The bean oil was higher with meal lower. This is consistent with my commentary of late. It is my opinion there exists further opportunity in this trade. The Aug oil share closes approx 48% today. This is up a point from yesterday. In my opinion this will work higher. My target has been 50-52%. This still represents a reasonable move from these levels if it transpires. The weather will be key through august for beans. Therefore the flat price may still have good support, especially in the old crop. The new crop presents challenges in my opinion. There will be a large amount of global supply available. The demand, while solid, may not expand. The US will be tight in stocks while the world is more than ample. There will be a lot to figure out. As always quantify your risk. In my opinion the oil remains the leader.
BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
800-993-5449
312-208-8836
jwalsh@walshtrading.com
www.walshtrading.com
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