SPREADS

Sep. crush trades to 74c/bu while oilshare trades to 32.74%.  Sep/Dec wheat trades from 7-7 3/4c.  The July/Dec corn spread trades from 8c to 8 3/4c while July/Sep trades from 1-3c carry.  July/Nov bean inverse strengthens to 9 1/4c from 2 3/4c, while July /August trades to 9 1/2c from 3 1/2c.  

PALM OIL

Sep. down 43 ringgits.  Indonesia's Trade Ministry said they would keep their crude palm oil tax steady at 0% for the fourth consecutive month.

NEWS

Stocks are 87 pts lower as traders assess the continuing spread of the virus.  Crude oil trades to a low of $38.90/barrel while the US dollar trades to 97.38.

CALLS

Calls today are as follows:

beans:  3-5 higher

meal:  1.20-1.50 higher

soyoil:  steady

corn:  3 1/2-4 higher

wheat:  3 1/2-4 higher

canola:  .20-.30 higher

TECHNICALS

November Beans:  Big picture is that price direction remains in a large sideways chop from $8.55-$8.85.  On a turn higher from lower, would look for a pullback into the report to be met with buying interest.  First resistance today crosses from $8.69/$8.72, and prices could go there on follow-through strength.  Big picture direction depends on the report, and what funds would want to do if a rally extension is seen post data, as they are now long around 40K.

first support: $8.59/$8.61

resistance:  $8.69/$8.70

possible range; depends on the report

Dec. Meal:  Overall direction is lower with new contract lows at $287.50.  Trendline low under this level surfaces at $285.00 - $286.00, and if needing to price or cover a short this would be a good place to do so.  Key resistance moves down to $291.00, and the top of the trading range is $298.00.

first support: $288.00

resistance:  $291.00-$292.00

possible range: much the same but depends on the report

December Soyoil:  Overall trading range is from 28c - 2950c, and the market recovered nicely once prices moved back over 28c in yesterday's trade.  Prices begin on the 100 day moving average of 2840c, so trade below becomes more negative.  In any case, would look for a market back towards 28c as a buying opportunity in a range bound 28c-2950c market.

first support: 2815c

resistance:  2870c

possible range: depends on the report

September Corn:  Overall direction is sideways and the past week of trade revealed that the range is from $3.15-$3.39.  Given the size of the rebound would look for a pullback early in the session towards $3.28 to hold for further strength into $3.35.  Direction after that depends on what the report has to say, though starting at the top end of the trading range gives more room for those wanting to be short to put on new sales.

first support:  $3.28

resistance:  $3.35

possible range: depends on the report

September Wheat:  Overall direction is lower and the market traded down to a new cycle low at $4.71 this week.  The chart price action is interesting for the bear, as prices closed into many tops from $4.91-$4.92 presented last week.  Therefore, any trade over $4.94 is going to send prices quickly back over $5.00, without much back resistance until prices climb to $5.08/$5.10.  Look to possibly head into a $4.71-$5.10 trading range.

first support: $4.82/$4.83

resistance:  $4.93

possible range: much the same but depends on the report

SEPTEMBER WHEAT

Overall direction has been lower since last March, with a new low placed last week at $4.71.  The down-trend is fairly strong with an ADX reading of 26, meaning traders are looking for places to sell this market rather than own it.  However, if prices climb above $4.94 which is over trendline resistance, it will offer up a better rally and a higher place to put on a new sale.  Since prices closed into major resistance, it increases the chance of a further corrective price rally which could take prices into a possible $4.75-$5.15 trading range from the lows.  Think we see at the open if prices can add further strength, but would not be surprised to see it.

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