COMMENTARY:
SOY
BEANS – The beans bounced today led by the soy meal. There really does not seem a reason for beans to be higher at present, in my opinion. The harvest progress is moving along nicely. The Brazilian planting is moving at a fast pace. The weather there has been good. The export pace is behind. The concerns at present may be. The Argentinian crop is only 1-2% planted. The La Nina concerns are abound. This could have an impact in two to three months. There are also inflation concerns that are stoking buying at present.
MEAL – The meal bounced today. The fundamentals for meal have been the weakest in the complex. The oil share has shown gains. Perhaps the market was due a nice bounce and we received it today. If the market gets into a technical trade, higher prices could be possible. I have little else to say at present. The crush pace will also potentially have an impact on meal prices.
BEANOIL – The bean oil market was very quiet today. This after the recent price appreciation in the oil share. The global veg oil market remains stout. The palm oil has yet to build significant stocks. I don’t want to underestimate this reality. If the stock levels don’t come up, then oil prices can appreciate. In addition, the Crude market is giving a bullish bent to all of this and will continue as little relief in sight there at present.
Quantify your risk.
BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
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