SPREADS
Sep. crush trades to 80.56/bu while oilshare trends lower at 32.44% from values over 33.0%. July/Dec corn narrows into 8 1/2c, the highest level since April 1. July/Sep corn narrows into 2c from 3c. July/Nov beans trades to a 2c inverse, with July/August trading to 3 3/4c. July/Dec meal trades from $6.40 to $6.60. Sep wheat/corn trades from 1.61 1/2c down to 1.59c.
PALM OIL
1.2% lower as fears of slowing global consumption due to coronavirus grow. Malaysian cash July offers for RBD palm oil and olein traded $5.00/mt lower to $622.50/mt and $625.00/mt, respectively.
NEWS
Stocks are 200 pts lower in trade with crude oil down to $37.08/barrel as more coronavirus cases increase globally. The US dollar trades to 97.59.
CALLS
Calls today are as follows:
beans: 2 1/2-3 lower
meal: .40-.50 lower
soyoil: 20-25 lower
corn: 2 1/2-3 lower
wheat: 2 1/2-3 lower
TECHNICALS
November Beans: Prices begin at the bottom of the trading range which is $8.65. The close was at the lower end, which increases the chance of a break of this level. Think we see if $8.65 can hold once again, though the trend is extremely weak. If prices can break $8.63 would look for a drop back to $8.56-$8.58 which is a good place to cover a short.
first support: $8.65
lower support: $8.58
resistance: $8.72/$8.73
possible range: $8.63/$8.73
Dec Meal: Prices are nearing the bottom of the trading range which is located at $290.00. Trendline support for the day is located at $292.00, and think we probably test it at the open. Would continue to straddle/strangle meal from $290.00-$301.00, as the range has been consistent here since last April.
first support: $291.80-$292.00
resistance: $294.50
possible range: much the same or lower
Dec Soyoil: prices are correcting lower after failing against the 2950c level. Look for a test of 2790c-28c in all likelihood. Major direction is lower and the market has yet to stabilize on a break.
key support: 2790c-28c
resistance: 2840c
possible range: much the same
Sep. Corn: Prices broke through the 50 day moving average at $3.28 and closed on the lows of the session. The move lower from higher suggests that prices will break down to test key support lows of $3.20/$3.21, but there is plenty of support to hold if we go there. If short would probably take something off unless prices can break and settle under $3.20.
key support: $3.21/$3.22
resistance: $3.28
possible range; much the same
Sep. Wheat: prices are attempting to find a bottom, and $4.83 has been a congestion level for this market. If short, would elect to take something off unless prices can break $4.83 quickly at the open. Even then, trendline support is close by at $4.77 should we go there.
trendline support: $4.77
first support: $4.83
resistance: $4.90
possible range: $4.83/$493 or lower
SEPTEMBER CORN
The major trend is now sideways as prices approach the lowest end of the trading range which is from $3.20-$3.39. Price action turns lower from higher and is moving down and away from key moving averages from $3.28-$3.32, now turned resistance. Look for a test of $3.20 /$3.21, though trendline support slides by for the day at $3.22. Could price or cover a short, as there is plenty of support at recent lows to stop a move downward. The trend remains weak at 17, meaning there is little follow-through.
TAGS – Feed Grains, Soy & Oilseeds, Wheat, North America