SPREADS

July crush trades up to 61.86c/bu while oilshare trades to 38.33%.  Goldman Roll begins today.  May/July bean inverse trades down to 5 1/4c from 6 1/4c while July/Nov trades from 1.30 1/2c to 1.35 1/2c.  May/July corn trades from 15 1/4c down to 14 1/4c, while July/Dec trades from 60c to 61 1/2c.  July/Dec meal inverse rallies to $18.50 from $17.90, and a break that was around $12.50 yesterday.  May/July Chicago wheat trades into even.  

PALM OIL

June down 57 riniggits, ending at 3,788 ringgit/mt. 

NEWS

Crude oil breaks to $59.05/barrel with the US dollar falling to 92.23.  Stocks are 23 pts. lower.  Workers filing for jobless claims rose to 744,000 last week, pausing a downtrend amid other signs of recent labor-market improvement.

CALLS

Calls are as follows:

beans:  1-3 lower

meal:  .80-.90 lower

soyoil:  3-5 higher

corn:  5 1/2-6 higher

wheat:  6-8 higher

canola:  2.40-2.80 higher

BUSINESS

No business reported.

TECHNICALS

May Beans:  Prices are trading from $13.96 - $14.40.  The close today was low end, suggesting that we could test $14.00 at the start of the day.  Primary direction is sideways and would look for a test of the 50-day moving average at $13.97 to probably yield a successful test should we go there.  Would continue to price breaks if need be, as the market could just as easily float back towards $14.35/$14.40 once again.

first support: $13.98-$14.02

resistance:  $14.12/$14.15

possible range: much the same or higher

May Meal:  Prices continue to congest in the same range which is from $395.00-$430.00.  However, the chart is once again testing the lower end of its range, but moving support a bit higher from $405.00-$ 408.00.  Would look for two-sided trade, and a likely move back towards the $411.00 to $412.00 area of resistance.   If we test $405.00 and it holds, would raise pricing ideas.

first support: $406.50-$407.00

resistance:  $410.00 / $411.00

possible range: much the same

May Soyoil:  Overall trade is sideways, but the best support under the market at a long -term trendline support level of 5175c should we go there.  Interim strong support is at 5240c, double lows on the chart, and could hold for a rally back towards 54c.  If needing to price, would think about getting something on the books on a good break towards 52c.

first support:  5250c

resistance:  5350c

possible range: much the same 

May Corn:  Strong price action with a well bid market gaining support from $5.53 /$5.55, trading over tops at $5.58, for a high end close.   On the open would look for follow-through trade and a test of $5.70 given the primary path of higher trade.   A pullback towards $5.60 would be a buying opportunity if day trading.  Overall direction now appears to be from $5.50-$5.85, using $5.70 as a pivot point.

first support: $5.63

resistance:  $5.68/$5.70

possible range: much the same

May Wheat:  Prices continuing to strengthen with an overall trading range from $6.00-$6.35.  The 100-day moving average and trendline resistance crosses at $6.32, so moving over this region will no doubt trigger some buy-stops and a trade towards $6.40.  Prices closed on the highs, so would look for a likely test of major resistance at $6.30/$6.33 today.

first support: $6.20

resistance:  $6.30/$6.33

possible range: much the same

NOVEMBER BEANS

The major direction is higher for this market, with a recent ctr high at $12.85.  The two vertical days of price increases are bullish, and was followed by a period of price congestion which appears to form a bull -flag.  The next direction out of this formation is likely higher, which eventually targets $13.00-0$13.25.   It would be unusual for prices to begin to break down from this level, though the market is busy determining if $12.55-$12.60 is a point from which to rally.  Regardless of weakness, the overall trading range after the report lifts the bottom of the trading range up to $12.45 for what could become a $12.45-$12.85 or higher trading range.  

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