The whole complex is running at the top of the scale on OI, since 2010. Meal has the most breathing room while oil is next and beans are narrowly edging out 2014. Meal had 141 deliveries, interestingly only 166 oil contracts are still floating around and beans are leading the pack with 258 contracts out today with Cargill and CGB both putting out deliveries. SA is status quo and we are seeing the first Brazilian surge in exports this past week, over 7X the previous week and topping 1.5 MMT. USDA crush report is showing a poor product movement trend that should be negative to the market. Higher meal and oil stocks than expected on a report that had crushed beans in line with projections. That is a build that does not bode well for prices in the US. A new problem in the complex is the EPA. Now they have set their sights on herbicides for varying reasons. Bayer has had their Belt product’s approval removed as of yesterday and several others are under review. The spreads tightened a bit yesterday, but overnight are relaxing again on the front end. Look for both sides to trade, but again outside markets and fundamentals are negative for the complex.
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