Commentary: The soy traded both sides today due to outside influence. The soy in the near term will look at the SA production estimates. The Brazilian estimates are coming down. This will open a window for the US to make sales to China. It is possible that the Chinese start to restock and US purchases should be on the buying list. The domestic demand remains fairly strong. The monthly crush came in at 181.6 above last years number of 162.8. The margins continue to support a robust crush pace. The meal has eased the last couple sessions. The concern from Argentina has not abated. It is possible that the meal has one more rally if the beans move to the upside. The new cases of ASF in China need to be watched. The bean oil closed higher on thoughts that the Trump admin is working through the oil war with Russia and Saudia Arabia. This remains to be seen but offered a positive for long term blending which has been effected.
John J. Walsh
President, Walsh Trading, Inc.
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