SPREADS

March crush trades to 1.00c/bu while oilshare trades to 36.0%.  July/Dec corn trades out to 3c carry from 2 1/4c while March/May trades back out  to 7c.  July/Nov beans trades from 3c to 4 1/2c.  March wheat/corn trades from 1.78 3/4c down to 1.74 1/4c.

PALM OIL

Feb. down 39 ringgits.  Indian palm oil importers have effectively stopped all purchases from Malaysia after the gov. privately warned them to shun product from the country following a diplomatic spat.   China may step in but for now is about $5.00 away in cash.  

NEWS

The Dow is up 89 pts while crude oil falls to $59.59/barrel.  The US dollar trades up to 97.53.  

CALLS

Calls are as follows:

beans: 5-7 lower

meal:  1.20-1.50 lower

soyoil:  25-30 lower

corn:  1 higher

wheat:  2 1/2-3 lower

canola:  2.10 -2.20 lower

BUSINESS

USDA reports 137,000 mt of corn sold to South Korea in 2019

TECHNICALS

March Corn:  Feels like today that some shorts are opting out of this market given the constructive reaction to the report last Friday.  Would look for a pullback towards $3.82/$3.83 to hold, and for prices to perhaps trend back towards the $3.89/$3.90 level.

first support: $3.84 1/2-$3.85

resistance:  $3.88 1/2 to $3.89

possible range: much the same

March Wheat:  The market will begin the day lower but would not be a seller in this market until we receive a signal such as a key reversal, outside day closing lower, etc.  For now, pullbacks continue to hold, and a change of trend will not occur until the market can take out and settle under $5.40.  Would look for a pullback towards $5.50 to also find support, though major support moves up to $5.45.

first support: $5.55

resistance:  $5.66/5.68

possible range: much the same 

March Beans:  Sideways now from $9.33 - $9.61 big picture.  The market will open below $9.40 which is going to invite more pressure.  Think that today holds the best chance for another test of $9.35, and eventually a test of the lowest level of the range at $9.33.

first support: $9.35

resistance:  $9.45

possible range: much the same or lower

March Meal: Prices will open on a weaker note towards the lower end of the trading range.  Would look for a test of $300.00 again, and a close under this level would trigger trade towards $295.00.

first support: $301.00

resistance:  $303.00

possible range: much the same or lower

March Soyoil: Prices built in resistance which triggered gap-fill at 3429c and trade back towards 34c.  Would think the market may run through 34c and down to test the lower end of the range which could be in the vicinity of 3355c-3380c.  Should we get there would cover a partial short and look for a place to enter on the long side of the market.

lower support: 3380c-34c

resistance:  3435c-3430c

possible range: much the same

MARCH CORN

Overall trading range was reinforced last Friday with a break to $3.76 holding for a nice close.  The market nearly had an outside day closing higher, but instead stopped just short of that.  The price action will at the very least imply that any breaks towards $3.77/$3.80 will probably see short-covering or invite new longs to the table.  The trade above the 100-day moving average of $3.87 was interesting in that it may invite follow-through buying today.  Could continue to straddle/strangle the market here from $3.75-$3.95, but would probably take a growing season problem to see the higher side target of $4.05, which is the 200-day moving average.  Prices may still struggle on a rally towards $3.90, but the impressive price action implies that we could head there as well.  

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