SPREADS

Oct. crush trades to 95.46c/bu while oilshare trades to 34.94%.   Corn spreads tighten a bit with Dec/Dec trading into 36 1/2c from 37 3/4c, and values that were as wide as 40c.  Sep/Dec corn trades into 11 1/2c from lows of 13c carry.  Sep/Nov bean trades into 2 1/2c from 3c.  Sep/Dec meal trades from $5.20 to $5.40.  Dec wheat/corn trades from 1.77 1/2c to 1.76 1/4c.  Sep/Dec wheat trades out to 9c from 8 1/2c.

PALM OIL

Oct. closed up 40 ringgits.  Sep. cash offers for RBD palm oil and olein traded unchanged at $705.00/mt and $707.50/mt, respectively.

NEWS

Stocks are higher this morning, up 250 pts, with crude oil trading to $42.35/barrel and the US dollar at 93.48. 

CALLS

Calls today are as follows:

beans:  steady

meal:  mixed

soyoil:  20-25 higher

corn:  mixed/lower

wheat:  3-5 lower

canola:  .40-.60 lower

BUSINESS

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

USDA reports 258,000 mt of beans sold to China for 20/21

TECHNICALS

December Corn:  Prices are congesting around $3.23 this morning, which is a halfway point between ctr lows of $3.20 and the rally high at $3.27.   Resistance is lowered to $3.27/$3.29, and lower support should prices take out $3.20 is $3.17.  While congesting around $3.23, the market has yet to post a good reversal signal or trade above $3.30, which would be needed to suggest the lows are in.  However, today's report may help to push prices out of the congestion zone one way or the other.

first support: $3.19/$3.20

resistance:  $3.25/$3.26

possible range: much the same but depends on the report

September Wheat:  Extremely weak price action, failing to trade back over $5.00 once it was broken, and closing at the lower end of its PM session range.  Because of the inability to hold a recovery rally, would look for prices to trade lower and test $4.85/$4.88.  Would expect to see prices probably lower into the open.

first support: $4.87/$4.89

resistance:  $4.95

possible range: much the same but depends on the report

December Soyoil: Prices triggered sell-stops at 3050c for a move down towards 3030c countered by a good close.  Would look for the recovery trade over 3050c to suggest that prices will test 31c again.  Target high for this market is still 32c.  The high of the PM session at 3078c was right up against the broken support line yesterday, so any trade back over 3080c will now be more supportive. 

first support: 3050c

resistance:  3090c /31c

possible range: much the same or higher

November Beans:  Prices are sideways but the lows of $8.65/$8.68 have offered up long term support.  If short, would probably cover something, or could try the long side down here.  Overall trading range is from $8.65-$9.00, with good resistance today at $8.80.  Would probably look to trend up towards the $8.80 level.

first support: $8.69/$8.70

resistance:  $8.79

possible range: much the same but depends on the report

December Meal: Prices showed its trading range for now with recovery trade off the ctr lows of $286.20.  Would look for prices to work into a possible $286.20 - $300.00 trading range. 

first support: $288.00

resistance:  $292.00

possible range: much the same

NOVEMBER BEANS

Overall trading range is from $8.65-$8.90/$9.00.  Long term support denoted by the red line crosses at $8.62, and if price breaks this level will open the door for a new leg downward.  The ADX trend is at a very weak 15, which is why follow-through is lacking on the upside and downside.  Would look for prices to remain sideways into the report this morning from $8.65-$8.80, and could straddle or strangle this range until there is a definitive move.  At this moment if short would elect to cover something on breaks or try the long side, as $8.65-$8.90 has been a value range for a long while.

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