World Perspectives
feed-grains soy-oilseeds wheat

Technical Views - Down and Going Lower

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.  

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