SPREADS

October crush trades to 74.71c/bu while oilshare trades to 34.58%.   Dec/Dec corn trades from 24 1/2c to 25 3/4c, while Dec/March trades from 10 1/4c to 10 1/2c.  Dec/March wheat trades into 8 1/2c from 8 3/4c.   Nov/Jan beans trades from 4 1/4c to 5c, while Dec/March meal trades from $1.90 to $2.40.  

PALM OIL

Nov. down 59 ringgits.  Analysts are forecasting August palm oil production around 1.84 mmt, up 2.0% vs. July's output, and ending stocks are 1.790 mmt, up 5.5% vs. the prev. month.  August exports are forecast down 14% to 1.53 mmt.

NEWS

Stocks are up 200 pts with crude oil firmer at $37.69/barrel.  The US dollar trades lower to 93.28.

CALLS

Calls today are as follows:

beans: 3-5 higher

meal:  2.20-2.60 higher

soyoil:  20-25 lower

corn:  1 lower

wheat:  steady

BUSINESS

USDA reports 132,000 mt of beans sold to unknown for 20/21

USDA reports 238,000 mt of beans sold to China for 20/21

TECHNICALS

December Corn:  Prices are sideways to higher, with congestion under the 200-day moving average of $3.61 1/2.  Rule of thumb is that if prices continue to sit just under resistance, it will eventually work its way higher.  Trendline support moves up to $3.57 and would expect to see prices eventually test $3.65/$3.66, or even $3.69/$3.72.   

trendline support: $3.58

resistance: $3.63/$3.65

possible range: much the same or lower

December Wheat:  Prices pushed just under the 200 day-moving average of $5.42 without any follow-through.  This could create more buying or short-covering activity, and send prices up towards $5.55/$5.60 once again.  Could be short, but would wait for confirmation of a break-down in prices and for support at $5.40 to be taken out before doing so.

first support: $5.42

resistance: $5.52/$5.55

possible range: much the same or lower

November Beans:  Still a strong market with shallow pullbacks buy-able, and prices closing at the highest end of extremes as a new chart high is placed at $9.78.  Relative strength index is extremely overbot at 80%, but could get as extreme as 88% before a larger reaction sell-off is noted.  New highs indicate that the move upward is not over, and would continue to be long and buy good breaks.  Support on a break now moves up to $9.60 with the rally high of $9.78.  WOuld expect to see new highs shortly after the open.

first support: $9.69 1/2-$9.70

resistance:  $9.78/$9.80

possible range: much the same or higher

December Meal:  Overall trading range has moved higher to $300.00-$318.00.  Would expect to see a quick challenge of double highs of $318.20/$318.30, with a test of trendline resistance at $320.00.  This market is not overbought, and the trend is more neutral.   On a back and fill, double lows are now located at $313.00, and would expect it to hold and sponsor the rally to new possible trading range highs.

first support: $315.00

resistance:  $318.00-$320.00

possible range: much the same

December Soyoil:  Prices are setting up for another possible run at the 3404c level.  The trading range is from 3250c-34c.  Support is building from 3280c-33c.  Could own soyoil against 33c for a day trade as prices work into a congestive pattern.

first support: 3315c

resistance:  3365c/3370c

possible range: much the same or higher

DECEMBER CORN

Overall trading range has moved higher, with the gap still open from $3.45-$3.48, and prices seeing key resistance at $3.65.  However, a new support line is building under the market, with better trendline support on a pullback located at $3.58.  The chart is also showing an ascending triangle, so a move over $3.65 marks a break-out, and the ascending triangle is always a positive formation, increasing the chance for a higher trade.  Trade over $3.65 targets $3.72/$3.75.  

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