SPREADS

November crush trades to 74.68c/bu while oilshare is slightly over 35.0% to 35.12%.  Dec/Dec corn trades from 19 1/2c to 20 1/2c, while Dec/March trades from 9 1/4c to 9 1/2c.  Nov/Jan beans trade out to 4 1/2c from 3 1/2c, while the Jan/March inverse trades weaker from 1 3/4c to 1/2c.  Dec/March wheat trades from 8 1/2c to 8 3/4c.  Dec wheat/corn trades from 1.72c to 1.77 1/2c. 

PALM OIL

Nov. up 49 ringgits, or 1.69% to 2,941 ringgits, its highest level since late January.  World vegoil strength continues behind the price rise.  Advertised expectations for Sep. ending stocks is that they will remain unchanged from a month ago, as a surge in exports is expected to negate a seasonal production rise. 

NEWS

Stocks are up 220 pts. with crude trading to $38.02/barrel, and the US dollar to 92.78.  Global stocks are higher as economic data from China and Germany show improvement and investors look ahead to the policy meeting by the US Federal Reserve.

CALLS

Calls are as follows:

beans: 3-5 higher

meal:  .30-.50 higher

soyoil:  10-15 higher

corn:  1-1 1/2 lower

wheat:  2-4 lower

canola:  1.20-1.50 lower

BUSINESS

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

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

USDA reports 120,000 mt of corn to unknown for 20/21

TECHNICALS

December Corn:  Prices are sideways to higher, with recent highs posted at $3.71.  The market is backing away from its high, but the setback is shallow.  Expect a pullback towards $3.63/$3.65 to see support, and the base of support has moved up to $3.50-$3.55.  Current trading range could still be $3.55-$3.75, but the market has yet to hit that peak.

first support: $3.65

resistance:  $3.69 1/2-$3.70

possible range: much the same or higher

December Wheat:  Prices rally but the previous tops are not as high, while trading into key moving averages eventually breaks them.  For the day, trendline support on a lower start is $5.38, and if we go there would expect it could hold.  Overall trading range here is from $5.25-$5.65, and the market begins at the lower end of the trading range, which could weigh on corn.

trendline support: $5.38

resistance:  $5.48

possible range: much the same 

November Beans: Prices continue the bull market run, but if selling prices slip below $10.00 again there could be pressure and a trade into support at $9.95.  Target highs overhead remain $10.10-$10.15 for today on continued strength.  Overall target high if prices continue to consolidate around $10.00 is $10.35.  

first support: $9.95/$9.98

resistance: $10.05/$10.10 

possible range: much the same

December Soyoil:  The chart continues to display good technical strength, though double highs are in place to begin the day at 3455c to 3457c.  This could set up a market retreat, but a pullback towards 3380c/3390c is a buying opportunity in a market where the top is yet to be defined.  Look for the odds of a new market high placed at the target high of 35c.

first support: 3405c

resistance:  3450c to 3460c

possible range: much the same

December Meal:  The market is still sideways higher, and double lows at $313.00 mark the lower end of the market.  Top trade is still $328.00, but could be surpassed depending on bean direction.  Target high moves back towards $329.00/$332.00 should we hold $321.00, which is now good support for the day.

key support: $320.00/$321.00

resistance:  $325.00/$326.00

possible range: much the same

NOVEMBER BEANS

Primary path is higher, and the bean market tends to congest around benchmark levels once they are breached.  Target high is now $10.20, but don't expect a rush to get there.  The climb has been fairly systematic.  Lower end of the market now moves up to $9.75 from $9.60 if highs of $10.20 can be reached.  Technically the chart is overbought at 85%, and would look for a correction lower on such a climb towards $10.20.

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