SPREADS
July crush trades down to 1.12c/bu while oilshare sells off to 29.79%. Bullspreads remain firm with July/Dec corn trading into 8c from 9c, and May/July corn into 3 1/2c from 3 3/4c. July/Nov bean inverse weakens to 2c from 5c on liquidation. July/Dec meal also weakens this AM, trading down to $4.10 from $5.40. May/July wheat trades from 2.17c down to 2.06c.
PALM OIL
June down 30 ringgits, or off 1.28%, its third day of losses. Demand concerns and forecasts for better March production are negatives.
NEWS
Crude trades to $22.10/barrel as indications from Trump are that Saudis and Russia can make a deal. The US dollar trades up again to 99.91 as money continues to find a safe haven. Stocks are trading 99 pts higher. 6.65 million Americans filed for unemployment claims last week, surpassing last week's 3.3 million.
CALLS
Calls today are as follows:
beans: 3-5 lower
meal: .80-1.00 lower
soyoil: 3-5 higher
corn: 1/2-1 higher
wheat: 6-8 lower
canola: 1.10-1.20 lower
TECHNICALS
July Wheat: Chart trades lower from sideways. Since the market is below the congestion top from $5.50-$5.70, and traded through converging lines of support at $5.43, would expect to see prices trade to $5.30. Wheat has a tendency to move as far as its congestion phase was when a break-out occurs. Therefore, one could take the 20c previous congestion zone, and flip it to the downside of $5.50 for a $5.30 target, which coincides with the lower end of the trading range now. Look for support on a further break to $5.29/$5.33, but think we go there.
first support: $5.35
resistance: $5.43/$5.35
possible range; much the same
May Corn: Prices trending sideways, but resistance is lined up to turn back a rally. Would look for the market to attempt another run at new ctr lows. If it cannot do so today, the market may be preparing to work into a $3.32 to $3.52 price trading range.
first support: $3.32/$3.33
resistance: $3.37
possible range: much the same or higher
May Meal: Prices broke a wide up-trend channel with a break of the $317.00 level. The $313.00 level has been the top and bottom of recent ranges and is a pivot point. Think the lower end of the range that supports another break is $309.00 to $310.00. For the morning, will be interesting to see if $313.00 can hold again.
first support: $313.00
resistance: $316.00
possible range; much the same or lower
May Soyoil: Prices placed double lows at 2582c with a nice bounce back over 26c. Would look for prices to possibly challenge 2580c again, but think it holds for a 2550c-27c trading range.
first support: 2570c-2580c
resistance: 2620c
possible range: much the same or higher
May Beans: Overall trading range is from $8.45-$8.95, and the low end close implies that we test $8.55 at the start of the trading session. Overall prices have bounced around from $8.50-$9.50 for awhile. If short, would get some coverage on from $8.45-$8.50 should we go there.
first support: $8.52/ $8.55
resistance: $8.65
possible range: much the same
MAY CORN
Overall trading range is from contract lows of $3.32 up to lines of crossing resistance at $3.48/$3.52. Funds will be there to sell rallies if we go there. So far, the market has not yet given off a good reversal signal, though if prices cannot make new ctr lows today then it could be time for a short-covering rally. On a break under $3.35, would look for support at the blue trendline which crosses from $3.29/$3.30 should we go there. If short, may want to cover something in on a break towards $3.25/$3.30.
TAGS – Feed Grains, Soy & Oilseeds, Wheat, North America