SPREADS

July crush trades to 74c/bu while oilshare trades to 42.68%.  Inverses remain well supported with July/Nov beans trading to 1.95c to 2.08c.  July /Dec meal is weaker trading down to $24.50 from $28.50.  July/Dec corn trades from 1.23c down to 1.12 3/4c inverse.  July wheat/corn trades from 26c down to 19 1/4c.  

PALM OIL

Holiday

NEWS

Stocks have traded both sides of unchanged and are currently up 17 pts.  The US dollar is in the red trading down to 90.58, while crude oil trades to $64.09/barrel.   US unemployment benefits fell to 473,000, a new pandemic low, and the latest evidence that fewer employers are cutting jobs as consumer spending goes higher and more businesses reopen.

CALLS

Calls are as follows:

beans:  19-22 lower

meal:  6.00-6.50 lower

soyoil:  50-60 lower

corn:  16-19 lower

wheat:  8-10 lower

canola:  37.20 lower

BUSINESS

USDA reports 680,000 mt of corn sold to China for 21/22.

TECHNICALS

July Corn:  Look for price stability this morning with the close under $7.00 negative.  However, visually trendline support is under the market at $6.89/$6.90, and while the poor close favors we test it the overall stronger trend could find commercial pricing which will keep $6.90 intact.  Could look for a potential $6.85/$6.90 to $7.35 trading range to emerge.  

visual trendline support:  $6.89/$6.90

resistance:  $6.98/$7.03

possible range: much the same

July Wheat:  Trading range continues from $7.10 - $7.50.  The market has now fallen into where multiple lows are now located.   On a further break, would look to target $7.11-$7.12 as key support, and if we go there would probably cover a short and even try the long side of the market.  Prices are trapped sideways, and with a strong ADX trend of 52 a bounce-back is more likely than not.

first support: $7.12/$7.15

resistance:  $7.30/$7.33

possible range: much the same 

July Beans:  The market is pulling back and attempting to establish a trading range after placing new ctr highs at $16.67 1/2.  Though prices are lower, would not get too comfortable if needing to price, as the market approaches visual support at $16.20.   The lower end of the trading range now moves up to $15.75 to $15.80 on a hard break or follow-through selling.  It is typical for prices to go back and test a major benchmark, so no a weaker open will be interesting to see if we can take out $16.20 for lower trade.  Would be looking for a place to cover a short, own, or price.

first support: $16.18/$16.20

resistance:  $16.30/$16.35

possible range: much the same

July Meal:  Trading range is higher with the low end now at $425.00 and the top end at $455.00.  The market begins lower and we will see if $440.00 can be broken.  If so, could wait for $435.00 to be hit, as this market tends to give up the most when all others are weak.

first support: $438.00/$440.00

resistance:  $445.00/$446.00

possible range; much the same

July Soyoil:  The market appears to be establishing a trading range from 63c to new ctr highs at 6744c.  Look for good support to emerge on a sell-off to 6450c to 65c.  If needing to price, would be patient for the lower level to be hit before jumping in.

lower support: 6450c

first support: 65c to 6520c

resistance:  6650c

possible range: 6550c to 6640c 

NOVEMBER BEANS

The major direction is higher and the new ctr high is $14.61.  The ADX remains strong at 46, meaning breaks of size should be viewed as buying opportunities.  Visual trendline support is located at $14.00, and if prices break down towards that level would think about pricing as long as we appear to stabilize there.  Look for a $14.00-$14.50 trading range to possibly emerge, but any problem would target a quick advance up towards recent ctr highs, and target $14.75 again.

TAGS – Feed Grains, Soy & Oilseeds, Wheat, North America