SPREADS

May crush trades to 69.25c/bu while oilshare trades to 37.37%.  July/Nov beans trades down to 1.58c from 1.64c inverse, while May/July firms to 14c from 10 1/2c.  July /Dec meal trades down to $37.20 inverse from $38.90.  July/Dec corn inverse trades down to 56c from 58 1/2c, while May/July firms to 12c from 11 1/4c.  July wheat/corn trades from 1.18 1/4c to 1.15c. 

PALM OIL

May down 44 ringgits at 3,640 on ideas that inventories could rise due to a drop in exports and rising inventories.  

NEWS

Stocks are down 32 pts with the US dollar firming to 91.39 and crude oil trading up to $61.06/barrel.

CALLS

Calls are as follows:

beans: 3-5 lower

meal:  2.20-2.80 lower

soyoil:  mixed/higher 

corn:  1 1/2- 2 lower

wheat:  4-6 higher

canola:  1.80-2.00 higher

BUSINESS

USDA reports 175,000 mt of corn sold to Japan

TECHNICALS

May Corn:  Attempting to define a trading range but prices reach major trendline support at $5.30.  If traders begin to use rallies or strength to sell or liquidate the market, then expect that we could trend lower.  December corn prices took out major support at $4.65, but now appears ready to use this level as consolidation.  Suspect that consolidation will also occur from $5.25 to $5.30 for price stability, and think we enter into consolidation from $5.30 -$5.45.

trendline support: $5.30/$5.32

resistance:  $5.38/$5.40

possible range: much the same or lower

May Wheat:  Prices are still sideways with major support at $6.35, but key support tested at $6.45 which held for a trade back over $6.50.  Would look to probably enter into a trading range from $6.45-$6.65 heading into next week's WASDE report.  Resistance moves down to $6.70.

first support: $6.48/$6.52

resistance:  $6.60/$6.62

possible range: much the same

May Beans:  Prices are sideways now from the top contract high of $14.45 3/4, and may re-test resistance at $13.91-$13.92 again.  Would look for the beginning of a trading range that is likely from $13.75 - $14.20/$14.25.  Prices begin the day lower, but $13.80 is now serving as important support given its ability to hold on weakness.  Would look to perhaps test it again, but if it holds would cover a short, price, or try the long side.

first support: $13.78-$13.81

resistance:  $13.91/$13.92

possible range; much the same or higher

May Meal:  Prices are softer with the market able to post new lows for the recent move down.  Prices were able to pop off $414.00, but a descending triangle is forming which suggests that rallies may find pressure with new lows.  For the day, trendline support was tested at $414.00.  Lower targets include $405.00/$410.00 should we break into new lows today.

first support: $413.00-$414.00

resistance:  $418.00/$419.00

possible range: much the same

May Soyoil:  the market is still operating in the upper portion of its trading range and traded to a key support low at 4850c.  This was a very good level from which to price, cover a short, or try the long side of the market.  If the other markets see pressure, we could see soyoil futures drop back under 49c to head to 4850c again.  However, suspect that we are entering a 4850c to 5095c trading range, with more congestion trade from 49c to 50c.  If soyoil heads higher could support beans today.

key support: 4850c

first support: 4880c

resistance:  4950/4970c

possible range: 4880c-4960c or higher

MAY MEAL

Prices are heading lower and trending towards a major low posted in Jan at $413.40.  The ADX has dropped to 17 as the trend continues to weaken.  Prices are now in a descending triangle and testing the bottom of the formation with the low of $414.00.  Would look for rallies to now become a selling opportunity, with a possible trading range forming from $413.00-$428.00.

major support: $413.00-$414.00

resistance: $418.00 to $419.00

possible range: much the same or higher

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