World Perspectives
feed-grains

Technical Views - Lower Range Profit-tacking

SPREADS

Dec crush trades to 86c/bu while oilshare trades at 45.44%.   Dec/March corn trades from 7 1/2c to 7 3/4c, while Dec 21/Dec 22 trades from 26c inverses to 24 1/4c.  Dec/March wheat trades from 10 1/2c carry to 11c.  Dec wheat/corn trades from 1.99 1/2c down to 1.84c.  Nov/Jan bean spread trades from 8 1/4c to 8 3/4c carry.  Nov21/Nov 22 bean spread trades from 36 1/2c to 33c.  

PALM OIL

Nov. down 73 ringgits at 4,367/mt.

NEWS

Stocks are 30 pts lower with crude oil trading to $72.72/barrel due to the slow recovery in the Gulf.  The US dollar trades down to 92.76.

CALLS

Calls are as follows:

beans:  6-9 lower

meal:  1.80-2.20 lower

soyoil:  35-45 lower

corn:  1 1/2-2 lower

wheat: 1-2 higher 

canola:  7.00-8.00 lower

TECHNICALS

November Beans:  Overall trading range is now forming which appears to be a bit higher than before the rally and the report. Would look for $12.80 to be established support, while the overall top end of the range is from $13.10-$13.20.  The downward momentum has stopped, and think we are about to congest around $13.00 for a pivot point trade.  

first support: $12.82//$12.83

resistance:   $12.93/$13.03

possible range: much the same

December Meal:  Prices remain in congestion mode from $340.00-$350.00.  Momentum lower has slowed while the market walks it back to $340.00 to see if it is a spot to rally from.  Would still look to get some coverage on with a break back towards $335.00 should we go there once more.  For now, we may remain above it while prices appear ready to base sideways for a bit.

first support: $340.00/$341.00

resistance:  $345.00

possible range: much the same 

December Soyoil:  Prices have once again extended lower as bulls book profits on a pullback towards recent lows at 55c.  Would look for prices to still maintain a 55c-60c trading range, using 58c as a swing point.  We could have reached an interim low with the night trade to 5620c.  

first support: 5580c/56c

resistance:  5710c/5720c

possible range: much the same

December Corn:  In the process of establishing a trading range, with prices likely from $5.10 - $5.45/$5.55.  While the market has pulled back this AM, could still see prices well supported on weakness.  Better support is from $5.22/$5.25, which was resistance.  

first support: $5.23/$5.25

resistance:  $5.33/$5.35

possible range: much the same or lower

December Wheat:  Wide trading range from $6.80-$7.25. Prices are back over $7.00, and this is becoming a swing point.  For the day, the wheat market feels well bid, so would look for a further advancement once we open again.   

first support: $7.05/$7.08

resistance:  $7.17/$7.20

possible range: much the same

DECEMBER WHEAT

The market remains in a wide range from $6.80-$7.25.  Key support now moves up to $7.01/$7.02 on a break, which has been a swing point for this market.  The market is going to find tough resistance from $7.22/$7.25, but the chart has air to go there.  Could continue to straddle/strangle this market, with prices now consolidating from $7.02-$7.22.  Wheat seems well bid this AM, and would look for a likely test of $7.20.

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