World Perspectives
feed-grains

Technical Views - Leveling Up

SPREADS

Dec crush trades 1.03c/bu while oilshare is steady at 45.78%.  Dec/March corn trades out to 8 1/4c from 7 3/4c while the Dec 21/22 inverse falls further to 15 1/2c from 19 1/4c.   Dec/March wheat trades from 11 1/2c to 12 1/2c.  Dec wheat/corn trades from 1.73 1/2c to 1.78c.  Nov/Jan bean carry trades 9 3/4c to 10c.   Nov 21/22 inverse trades from 26c to 28c.  Sep/Dec meal trades from $4.30 to $4.60.

PALM OIL

Dec. down 4 ringgits to 4,451 ringgit/mt. 

NEWS

Stocks are 150 pts higher as crude oil trades down to $73.74/barrel.   The US dollar trades to 93.98. 

CALLS

Calls are as follows:

beans: 1-3 higher 

meal:  .80-.90 higher

soyoil:  10-15 higher

corn:  2 1/2-3 higher

wheat:  8 1/2-9 1/2 higher

canola:  2.50-3.00 higher

BUSINESS

No business reported.

TECHNICALS

November Beans:  Prices are at the lower end of a congestion pattern but sits atop the 200-day moving average of $12.72/$12.73.  Would look for continued muted trade, though if corn prices want to trend higher than beans may follow.  Another break of the 200-day moving with trade under $12.68/$12.70 would look very negative and trigger more fund selling.  For the day think we probably stay congested around the $12.70 level as value.  Resistance moves down to $12.85/$12.88.

first support:  $12.68-$12.72

resistance:  $12.85/$12.88

possible range: $12.75-$12.85/$12.88

December Meal:  Decidedly sideways with key support once again holding at $338.00 and resistance at $345.00.  Momentum indicators are in neutral, but there is room to roam to the upside based on the successful hold of $337.00-$338.00 as support.  Would look for prices to trend back towards $345.00 again.

first support:  $340.00-$341.00

resistance:  $342.00

possible range: much the same

December Soyoil:  Prices are sideways from 55c to 60c and heading towards the middle of the range at 58c.  The chart is still one of the more constructive ones, and will remain so until it can close under 55c.  Think we target 60c, and would look for pullbacks to hold, although weaker crude may find more sellers than buyers today.

first support: 5680c/57c

resistance:  58c/5820c

possible range: much the same or lower

December Corn:  Prices set a new high for the rally this week at $5.41 3/4, and pullbacks to $5.30/$5.33 have been successful.  Would look to possibly rally further and head towards $5.45 interim resistance, with a target high at $5.50-$5.52.  Given there is a report, we may not see that high before it.

first support: $5.32/$5.33

resistance:  $5.39/$5.43

possible range: much the same 

December Wheat:  Prices are in a range from $6.88-$7.35, but the low of the session at $7.08 could stand as prices are well bid this AM.  Would look for further strength, and for pullback to hold today.

first support:  $7.05/$7.08

resistance:  $7.18/$7.22

possible range: much the same 

DECEMBER SOYOIL

Trading range outlined in red between 5450c and recent tops at 5860c.  The 100-day moving average crosses overhead at 6014c.  Markets that can head back towards trading range highs typically finds an upside break-out, though the ADX at 16 speaks to weak trend.  Would look for a continuation of this 55c-60c definition, and clearing tops at 5850c paves the way for a 60c trade as there is not much back resistance to stop it.  

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