Cash Strategist 1/12/21
Author
Published
1/10/2022
We are starting to see a well-defined difference in opinion form in the commodity market. This is the difference between domestic and global supply and demand figures.
While domestic demand has been solid in recent months, global demand isn't as great. This is generating an elevated amount of volatility in the market and making it harder to predict price direction.
The greatest difference in the domestic versus global balance sheets now is with soybeans.
Domestic demand for soybeans remains high with crush margins some of the best in recent years. This is driven by a need for vegetable oils for both food and fuel consumption.
While the domestic soybean stocks-to-use forecast has increased in recent months, it is still relatively tight and does warrant a minimal amount of price rationing.
The global side is a different story, as there is a record soybean crop being produced in Brazil, which is where ...
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