COMMENTARY:
SOY: The bean market performed well yet again. The market was led by the meal strength. In addition sales of 265,000 mt registered. The crush pace continues at a very high rate historically as well. It is true the bean market has some good news available. I indicated early last week that I felt the meal market was due a rally. The rally could come at the expense of the bean oil both flat price and relative to the oil share. This has transpired a bit quicker and sharper than I imagined. The meal can go higher, but should start to feel resistance at a bit higher level. The bean oil is near recent lows. It is my thought these lows will be taken out. The crush pace should continue to show a build in bean oil stocks. There remains concerns globally but the veg oil markets are starting slowly to see a more normal scenario. The main point, look for further bean oil weakness. Look for selling opportunities in the bean as a producer.
CORN: The corn market was stagnant today. The market has exhibited strength over the last couple of weeks. The fundamentals are a bit supportive after the last USDA report. In addition the technicals are supportive. The US harvest will be wrapping up here. The USDA yield numbers now leave the market watching global production numbers. The reality is that the corn should be supported a bit and cautious for any global issues.
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John J. Walsh
President, Walsh Trading, Inc.
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