COMMENTARY: The complex was higher both overnight and through the day. The beans are getting a bid based on weather uncertainty through July/August time period. The bean oil is rallying and leading the charge based on tight stocks at present. In my opinion the stocks will remain tight and price supportive through the summer. As I mentioned yesterday, I want to start to view the ag sector as old crop and new crop. It is my thought that the new crop will at some point decouple from the friendly old crop scenario. The global stocks situation is shifting. As well as the global demand scenario. At present crush is starting to slow. These factors while not as important today have longer term repercussions. In the near term however, lets look at the weather which may push old crop a bit higher. If this happens, look to sell remaining old crop production as well as price new crop. Lets see what the weekend brings.
John J. Walsh
President, Walsh Trading, Inc.
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