SPREADS
Sep. crush trades higher to 80.65c/bu while oilshare trades to 33.87%. The nearby August /Nov bean inverse still remains firm at 9 1/4c, though has backed off from its high of 11c. Sep/Nov trades 1/2-3/4c carry. The Sep/Dec corn spread has widened out to new lows at 10 1/2c. Sep/Dec wheat trades from 5 3/4c to 6 1/2c. Sep. wheat/corn trades from 2.09 1/2c to 2.09 1/2c.
PALM OIL
Oct. up 41 ringgits.
NEWS
Stocks are slightly higher today up 39 pts with crude oil prices trading u[ to $41.56/barrel. The big money is still buying gold and selling the US dollar.
CALLS
Calls today are as follows:
beans: 2-4 lower
meal: 1.50-1.80 lower
soyoil: 15-20 higher
corn: 1/2 lower
wheat: 5 1/2-6 1/2 higher
No business announcements.
TECHNICALS
December Corn: Major direction is lower as resistance continues to move down and lower prices are placed. Resistance moves down to $3.33 and support remains undefined with the possibility of trading down to $3.25.
key support: $3.27/$3.28
resistance: $3.31/$3.32
possible range: much the same
September Wheat: Prices are in a wide trading range from $5.00-$5.51, but in shorter scope hold the key support level of $5.20-$5.23 for a morning bounce. Would look for a possible retracement back towards $5.36 where the 200-day moving average is located.
first support: $5.25
resistance: $5.31/$5.33
possible range: much the same
November Beans: Prices continue to break down and appears ready to test the lower end of the trading range at $8.80. Very strong support sits under the market from $8.68 (100 day moving average) up to $8.71. Prices are attempting to consolidate but any trade under $8.83 is going to invite more fund long liquidation.
first support: $8.82
resistance: $8.88/$8.92
possible range; much the same or lower
December Meal: Prices heading lower after rallying to $303.00. Prices are also under the 100-day moving average of $298.00. Look to test trendline support at $295.00, and if it holds could promote some stability. A break of $295.00 would open the door to trade back to $291.00.
key support: $294.50/$295.00
resistance: $298.00
possible range; much the same
December Soyoil: Overall trading range is from possible lows of 29c up to 31c. The market found support at 2960c which was a turning point higher for the market, but the 200-day moving average will present a challenge for the soyoil bull as it sits at 3050c this morning. The high of the session at 3030 also is against trendline resistance. Despite its nice bounce would expect to see the 2950c-2960c level challenged again, though any trade back over 3050c would springboard prices quickly to 31c.
first support: 2980c
resistance: 3020c
possible range: much the same
DECEMBER CORN
The market is breaking to the downside as the gap in early July remains open from $3.42-$3.44, and was a signal of weakness to come. The trend is still weak overall with an ADX reading of only 17, meaning prices will be choppy as they head lower. However, resistance is forming each time the market rallies a bit and fails. Better resistance now moves down to $3.33, or would be considered a good spot to put on a fresh short if we get there. Given the trade back under $3.30, would say while resistance levels are getting fortified, the lows of this move are yet to be defined. Contract lows are $3.22, and we are probably on our way to testing them.
TAGS – Feed Grains, Wheat, Soy & Oilseeds, North America