SPREADS
Jan crush trades down to 98c/bu, under 1.00c/bu, around 40c off its highs. Oilshare trades down to 32.36% in a correction. Dec/March corn trades into 6 1/2c from 7c while the Dec/Dec inverse falls to 9 1/2c from 15 1/2c. Dec/March wheat trades from 4 1/2c carry to 5 1/2c. Jan/March bean spread trades out to 2c carry from 1/2c. Dec /March meal inverse trades down to $2.30 from $4.00.
PALM OIL
Feb. palm oil down 75 ringgits closing at 3,251 ringgit/mt. Cash offers were down $10/mt. SGS forecasts palm oil exports for Oct. 2020 at 1.714 mmt of product, up 6.9% vs. Sep. exports.
NEWS
Stocks are up 300 pts. as the promise of more vaccines appears ready to be approved. Gold prices fall to $1809/oz with crude trading up to $43.89/barrel.
CALLS
Calls are as follows:
beans: 10-13 lower
meal: .30-.60 lower
soyoil: 50-60 lower
corn: 4-6 lower
wheat: 1/2-1 lower
BUSINESS
No business announcements
TECHNICALS
Jan Beans: Prices begin on trendline support at $11.75, with a correction from the top of the market at $12.00. The chart will be open to a larger correction if it takes out trendline support this AM which is right at the low of the day at $11.74. While the contract high is now $12.00, the market is searching for a trading range low. If short, given the strength here and the lack of rainfall for Brazil, would be scale down covering from $11.75 down to $11.65 which could be the trading range low.
first support: $11.75
resistance: $11.85/$11.88
possible range: much the same or lower
Jan Meal: Overall trading range is from $385.00-$399.00, and the market support for the day is located at the low of $390.00. Prices did bounce off the $390.00 level, though any probe underneath will find a better break towards the 20-day moving average of $384.50. Would look to probably cover a partial short on a break towards $388.00-$390.00 given recent strength.
first support: 389.00-$390.00
resistance: $394.00
possible range: much the same or higher
Jan Soyoil: Overall trading range appears to be from 37c-39c. The low of the PM session at 3727c meets the last low from which the market rallied to current ctr highs. Therefore, if short would probably get something covered in, and keep the rest in case the chart can dip under 37c.
first support: 3730c
resistance: 3790c/38c
possible range: much the same
March Corn: The chart now looks more vulnerable to getting into sideways definition from double tops at $4.35 3/4. First support for the day is located at $4.22, but the market put in a nice bounce off the low of $4.23 1/4. Would look for another dip towards $4.22 to find good support.
first support: $4.22
resistance: $4.32
possible range: much the same
March Wheat: Trading in a $5.90-$6.20 range, and a slightly lower start. Prices are in a triangle pattern formation, and if one market heads higher it could be this one. Could continue to straddle/strangle this market, with a downside exit and a possible break towards $5.80.
first support: $5.97/$5.98
resistance: $6.05
possible range; much the same
MARCH WHEAT
Overall trading range is from $5.90 up to $6.20, as outlined in red, and could straddle/strangle this level. The major direction is sideways/lower, and prices could eventually trend lower targeting $5.80. Trendline support in the triangle is located at $5.96, and a break of this would move prices towards the bottom sell-off low of $5.90.
TAGS – Feed Grains, Soy & Oilseeds, Wheat, North America