Commentary:
The soy did rally today and it was led by meal strength. The oil share is taking a bit of a breather after its recent rally. The meal and beans could extend the rally a bit further. The Chinese are buying beans and could continue to purchase US beans into August. The Brazilian has sold himself into a temporarily tight situation. The Argentinian market is mired in political issues. This opens the door for the US despite the political wars going on. It seems as though the meal market is due a bit more upside here as the crush is slowing in the US a bit. This will tighten up meal for the time being. It is my belief however that the vegoil market may have long term legs. This is fueled by the increase in the Brazilian bio mandate. As well as strength in palm for various reasons. Look for a rally here as long term hedging opportunities. Quantify the risk.
Trade Suggestion(s)
NA today
Risk/Reward
Futures-
Options –
BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
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