SPREADS

Sep. crush trades to 76.04c/bu while oilshare trades lower, back to test 34.0% once again.  The bean inverse remains well bid with August/Nov closing at its highs of 4 1/4c from 2 3/4c.  Sep/Nov also remains extremely firm trading into 2 1/4c from 3c.  Sep/Dec corn widens out to 7 3/34c from 7 1/4c.   Sep./Dec wheat firms to 6 1/2c from 7c.  The Sep. wheat/corn spread trades from 1.94c to 1.97 3/4c.  

PALM OIL

October palm down 21 ringgits

NEWS

The stock market is higher this morning crude oil prices hitting new trading range highs at $42.16/barrel, as economies continue to recover from Covid.  The US dollar trades down to 95.61. 

CALLS

Calls today are as follows:

beans: 6-8 lower

meal:  2.20-2.50 lower

soyoil:   5-10 lower

corn:  2 -2 1/2 lower

wheat:    3 1/2-4 higher

BUSINESS

USDA reports 180,000 mt of beans sold to unknown for 20/21

USDA reports 125,000 mt of beans sold to China for 20/21

USDA reports 207,880 mt of corn sold to unknown

TECHNICALS

December Corn:  Prices begin on trendline support at $3.32.  Business announcements and a higher wheat market could help prices to maintain support at this level.  If short may want to cover a partial position, and keep the rest in case prices can take out trendline support from $3.31-$3.32.  A violation of $3.30 opens the door to a larger sell-off to test prev. ctr lows of $3.22.  The ADX trend is still weak, meaning follow-through at bottoms and tops does not typically occur.  As such, the starting point lower is a good test if prices will exit the range or not.

first support: $3.31 1/2-$3.32

resistance:  $3.35/$3.36 1/2

possible range: much the same or lower

September Wheat:  Prices traded below $5.20, but recovered to close back into trading range territory.  Given the strength of the up-trend, with an ADX reading of 30, would cover a short or try the long side of the market for retracement purposes.   The middle of the $5.18-$5.50 trading range is $5.30/$5.35, and think we go there.

key lower support: $5.15/$5.18

resistance:  $5.28

possible range: much the same or higher

November Beans:  Prices begin back below the $9.00 level, but would not be surprised to see both sides trade, even on a weaker start.   Trading range is from $8.80-$9.13, and would use a pullback to towards $8.90 to cover a partial short in lieu of more biz announcements today.  Funds are long and may defend.

first support: $8.89/$8.91

resistance:  $8.98/$9.01

possible range: much the same

December Meal:  Defended its key lower yesterday posting an outside day closing higher.  Look for pullbacks to see pricing interest, and better support returns to $293.00.  Overall trading range is $290.00-$308.00, and could straddle or strangle this level of trade.

first support: $293.00

resistance:  $296.00

possible range: much the same

December Soyoil:  Prices hit a trading range high at 3106c with a small corrective break. Would look for breaks to own on this chart as the major direction has been sideways, and soyoil will typically attempt another go at recent highs.  Target high is 3115c.  Any trade above the 200 day moving average again would suggest that prices will rally once more.

key support: 3015c/3020c

resistance:  3055c

possible range: much the same or higher

SEPTEMBER WHEAT

Prices are attempting to find the bottom of a trading range from double highs of $5.51 1/2.  The hard break took prices out of overbought territory and consolidated price action.  The market is back over the 100-day moving average of $5.23, where it begins the day.  The bounce increases the chance that prices can continue to head higher between the 100-day moving average of $5.23 and the 200 day moving average of $5.35.  Look for $5.35 to become a swing point in a $5.20-$5.50 trading range.

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