SPREADS

July crush trades to 1.12c/bu while oilshare is slightly weaker this morning trading down to 29.89%.   May/July corn trades into 4 1/2c from 5c, while July/Dec narrows into 10 1/2c from 11 3/4c.  July/Nov beans trades down to 6 3/4c from its 12 1/4c inverse high.  July/Dec meal trades down to $6.70 from $9.90.  May/July wheat inverse trades from 5 3/4c down to 2 1/4c.  May wheat/corn trades from 2.27 3/4c down to 2.20 3/4c.  

PALM OIL

June down 64 ringgits, mirroring losses in rival oils, and pressured by worries over a plunge in demand as more countries go into lock-downs due to the pandemic.  The expectation now is for reduced purchases moving forward and estimates of better March palm oil production.  

NEWS

Stocks are down over 700 pts, with crude trading to $20.80/barrel, and the US dollar firmer at 99.77.  US companies cut 27,000 jobs in March, according to ADP payroll processors.  Small businesses took the biggest hit losing 90,000 jobs.  

CALLS

Calls today are as follows:

beans:  10-13 lower

meal:  3.50-3.80 lower

soyoil:  40-45 lower

corn:  3 1/2-4 lower

wheat:  4-6 lower

canola:  .90-1.00 higher

TECHNICALS

May Beans:  Prices in a trading range from $8.70-$9.00, but multiple tops at $8.88-$8.90 now suggest that lower levels of support are likely to be tested, and probably broken.  If $8.70 is violated, look for selling pressure to take the market down to $8.40/$8.45, which is the lower end of the trading range now in the broader picture.

first support: $8.68/$8.71

resistance:  $8.80

possible range: much the same 

May Soyoil:  Prices are now back under the uptrend channel which took action up to 2738c.  Key support today is 2650c, which was already violated this morning.  Resistance moves down to 2690c/27c, and would look for prices to trend down towards 26c once again.

key support: 2630c-2640c

resistance:  2680c

possible range: much the same

May Meal: Prices broke a wide uptrend channel by testing $318.00, which suggests we trend down towards $313.00-$315.00.  The chart may be in the process of turning sideways from higher, and now looks set-up to establish a $310.00-$336.00 trading range.

key support: $315.00

resistance: $319.00

possible range: much the same

July Wheat: Overall trading range is from $5.30 up to $5.70.  For now prices are in a consolidation period, but on breaks under $5.50 converging lines of support at $5.43 and $5.30 are likely to support.  IF short and we break $5.50 would scale down cover at these levels.

first support: $5.50

resistance:  5.60/$5.63

possible range: much the same or lower

May Corn:  Prices are trending towards ctr lows of $3.32.  The market recovered to $3.41 yesterday before opening lower today.  That moves resistance down to $3.44 and suggests we see a test of ctr lows of $3.32.  Interim support is $3.35.

first support: $3.35

resistance:  $3.40

possible range: much the same

JULY WHEAT

The chart is in a consolidation zone forming a triangle, which denotes a time in the space of a chart where traders are unsure of what to do next.  However, typically when these patterns form, they will exit in the same direction.  For this chart, that could mean an eventual break-out to higher levels of trade.  The uptrend is fairly strong with an ADX reading at 31, which invites buyers to the table if prices work lower.  The mini-trading range is from $5.50-$5.70, and would prefer to buy breaks until the market can take out the lower converging lines of support at $5.30, which now is the bottom of a $5.30-$5.70 trading range.  Support today is $5.50 once again, and if wanting to be short would wait to see it broken.  

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