SPREADS
Sep crush continues to improve its margin at 92.34c/bu and oilshare remains strong at 35.54%. Sep/Dec corn trades out to 12 1/4c from 12c, and wider than recent values at 10 3/4c. Dec/Dec corn trades from 39 3/4c to 40 1/2c. Sep/Dec wheat trades from 6-7c carry. Sep/Nov beans trades from 2 1/4c to 3 1/2c carry. Sep/Dec meal trades from $5.10 out to $5.60.
PALM OIL
Oct. palm traded up 49 ringgits with cash offers higher up $15/mt.
NEWS
World stocks are lower this AM, with the Dow off 80 pts. Crude trades at $42.57/barrel high, with the US dollar trading to 92.52 lows.
CALLS
Calls are as follows:
beans: 1-2 higher
meal: steady/mixed
soyoil: 25-30 higher
corn: steady
wheat: 1 1/2-2 higher
canola: 80-1.00 higher
DELIVERIES
Soyoil: 259
BUSINESS
USDA reports 126,000 mt of beans to China for 20/21
TECHNICALS
December Soyoil: Major trend is higher and pullbacks to designated first support levels continue to hold. The market target high is 32c, and would look to go there. Trendline resistance for the day is 3180c/3185c. On a strong rebound and firm start, would look for prices to head there. Pullbacks should be owned as the market is strong there is no sign of reversal trade.
first support; 3130c
resistance: 3160/3175c
possible range: much the same
November Beans: Prices firm off the lows of $8.75, which is a weekly low. Prices turned higher from lower, and beans have a tendency to follow soyoil prices. If soyoil continues to head upward, would look for beans to grind back towards $8.85/$8.90.
first support: $8.72/$8.75
resistance: $8.83/$8.85
possible range: much the same
December Meal: Prices are sitting at the bottom of a trading range from $287.50 to $303.00. Good support is $288.00, and if needing to price something would do so. Overall, the $287.50-$305.00 has held for weeks, and it still offers good support.
first support: $288.00
resistance: $292.00
possible range: $289.00-$292.00
December Corn: Fighting to post a low with good support at $3.20 and key resistance at $3.25-$3.28. Prices rallied to $3.24 which is slightly stabilizing. Would look for a continued rally towards $3.25/$3.26 which may become another selling opportunity.
first support: $3.21
resistance: $3.25
possible range: much the same or lower
Sep. Wheat: Put in an outside day of trade so far which is constructive with a nice bounce off the low at $5.05. Prices may test $5.05 again, but think that this bounce could continue to follow-through with trade back towards $5.23/$5.25.
first support: $5.08
resistance: $5.15/$5.18
possible range: much the same or lower
SEPTEMBER WHEAT
Overall trading range is from $5.00-$5.51 1/2. The market closed well, and the overall down-trend channel objective was met with strong support at $5.05. If short, would probably get something covered in, as it is more likely to now see prices climb back towards the 100-day moving average of $5.23 again. Look to maintain a $5.00-$5.50 trading range.
TAGS – Feed Grains, Soy & Oilseeds, Wheat, North America