SPREADS

May crush continues to weaken trading down to 62.64c/bu while oilshare strengthens again to 37.26%.   July/Nov beans trades higher from 1.66 3/4c to 1.73c, while May/July inverse strengthens to 16c from 14c.   July/Dec inverse trades from $40.40 down to $38.60.  Jul/Dec corn trades from 52 1/4c up to 56 1/2c while May/July trades from 13c down to 11 1/4c.  July wheat /corn trades 1.2 2 1/4c to 1.25 1/4c.  March/May corn trades into new inverse highs at 17c as it heads into expiration in a week or so.

PALM OIL

May palm closed up 37 ringgits to 3.679 ringgit/mt.

NEWS

Stocks were higher earlier in the morning but are now up 29 pts.  Crude oil trades to lows at $59.24/barrel.  

CALLS

Calls are as follows:

beans:  8-11 lower

meal:  3.30-3.80 lower

soyoil:  10-15 lower

corn:  6-8 lower 

wheat:  6-9 lower

canola:  .30-.40 lower

BUSINESS

No business reported.

TECHNICALS

May Corn:  Sideways trade from $5.25 to $5.60, but right now the chart is building some new resistance from $5.45 to $5.50 due to the failed rallies.  On a weaker start would look for follow-through trade to the downside and a test of $5.30-$5.32 once again.  A close under $5.30 would be needed to pull prices down to $5.10 to $5.12, but the trend is weakening, funds are long, and today is a good test as to where the bottom of the range is located.  

first support: $5.28-$5.32

resistance:   $5.35/$5.38

possible range: much the same or lower

May Wheat:  The market continues in sideways trade from $6.35 - $6.75, with some general price action above key resistance which seems to find little follow-through.  ON a weaker start would look for a test of $6.45-$6.50 once again, and for $6.60-$6.65 to return as key resistance.  Could straddle/strangle these levels as well.

first support: $6.48/$6.50

resistance:  $6.60/$6.62

possible range: much the same or lower

May Beans:  The market is now establishing a wide sideways trading range from $13.75/$13.80 to $14.25/$14.30.  On a weaker start would look for a test of $13.95 to $14.00.  The chart has now placed 2-3 tops at $14.15 - $14.18 which are holding as key resistance.  Could sell the market against this level, though we will probably see on a continuation break if prices can actually stay under $14.00.  Suspect they will as the sideways price action continues.

first support: $13.92/$13.95

resistance:  $14.11-$14.15

possible range: much the same or lower

May Meal:  Prices are trending sideways/lower, with trendline support on a larger break surfacing from $413.00-$414.00.  The pattern has been to hit new lows and quickly pop higher.  Would look for more of the same today and view these dips as good pricing opportunities when they arrive.

trendline support: $413.80-$414.00

first support: $415.00

resistance:  $420.00

possible range: $415.00-$420.00 or lower

May Soyoil:  Prices sold off to 4850c which appeared to be a cycle low for a congestion phase from 49c to 50c.  Prices may test 49c again due to opening weakness, but would look at dips as a good opportunity to get long.  Until prices close under 4850c, would be a buyer for the possibility of new contract highs.

first support: 4920c

resistance:  4990c-50c

possible range: much the same or lower

MAY MEAL

The major direction continues to be sideways/lower, but the relative strength index is approaching a mildly oversold status at 44%.   The ADX has fallen to 17, meaning that the trend is very weak.  If needing to price, would continue to look at places along lower trendline support.  For the day, the visual support line crosses at the low placed in late Jan at $413.40.  Think we probably can go there, but if we do, crossing lines of support are very strong suggesting it is a value level that could hold for a $413.00-$423.00 to $425.00 trading range.  

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