Another day of a nice overnight bounce, so let’s see if the palm oil story will allow that this time. The low production number has palm oil gapping higher overnight. 164 receipts are still floating around in delivery. The spreads are static and range bound for now. SA and NA weather are predicted to help for the majority. US export demand continue to flow out of the gulf and PNW. Rail and barge movement has so far been more than sufficient. There is also now a bit of a rush into commodities as a whole from the Trump effect. Most people see a stimulus program that will help more than just the US. Next week will be interesting to see how much additional money the index funds have invested as this week’s report will be too early to catch the last couple of days’ investment. The bean longs for the spec funds should see an increase this week and what little damage was done earlier should more than be made up for the last two days. We did see OI in beans jump yesterday and products were marginally different with oil down and meal up. That should change today and into next week on the palm oil story. Look for better trade across the complex, but beans and oil should be the most impressive.
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