SPREADS
Sep. crush trades up to 77c/bu while oilshare values are weaker at 32.19%. Spreads are slightly wider with Sep/Dec. corn trading out to 9 3/4c from 8 3/4c. Sep wheat/corn trades from 1.48 1/2c to 1.50c. August / Nov beans trades firmer into 6 1/2c from 8c. Sep/Dec meal trades into $5.30 from $5.80.
PALM OIL
Sep. down 32 ringgits. Malaysia is looking to strengthen diplomatic ties with India in order to create a win-win situation with its largest buyers, according to the Plantation Industries and Commodities ministry.
NEWS
Stocks are 200 pts lower with crude trading at $40/barrel, and the US dollar firmer at 97.15.
CALLS
Calls today are lower across the board:
beans: 4-6 lower
meal: .80-.90 lower
soyoil: 25-30 lower
corn: 4-6 lower
wheat: 1 lower
canola: mixed
TECHNICALS
November Beans: Path of least resistance is higher and prices begin the day with a test of $9.00. It is not unusual for prices to pullback and test a benchmark once prices have moved to the upside. Would look for a pullback towards better support from $8.90-$8.95 as prices carve out a higher trading range than before the report. The rally is taking a time-out, but may not be finished.
first support: $8.98/$9.01
resistance: $9.05/$9.08
possible range: much the same or lower
December Meal: Prices traded into the 200-day moving average of $308.00 but could not drive beyond it. Look for price congestion on back and fill towards $300.00, but that level will offer up support. First support today is $303.00 which may hold a further decline.
first support: $303.00
resistance: $306.00
possible range: much the same or lower
December Soyoil: Prices could work between 2880c-2920c in sideways trade. Prices begin on the defensive and a break of the 20-day moving average of 2880c will promote a larger pullback with trade back towards 2850c. Trading range in the big picture is now from 28c-2950c.
key support: 2880c
resistance: 2915c
possible range: much the same or lower
December Corn: The trading range has moved higher and double highs of $3.63 with a line of resistance down towards $3.58 promotes a deeper decline. Would look for the lower end of this trading range to have moved up to $3.30 /$3.35, and think a pullback towards $3.45/$3.48 finds better support as prices begin a congestion phase.
first support: $3.47/$3.48
resistance: $3.55/$3.56
possible range: much the same
December Wheat: Overall trading range could be from $4.80-$5.15. For the moment prices are congesting from $4.95-$5.05, and trade over $5.08 will trigger a rally towards $5.18. If prices hold $5.00 at the open would look for some short-covering to take us back towards the middle of this range.
first support: $4.96
resistance: $5.05/$5.06
possible range: much the same or higher
DECEMBER SOYOIL
Overall trading range outlined in red is from 28c-2950c. A small gap still remains open above the market at 2964c. Strong support is located at 2880c where trendline and the 20 day moving average meet. Therefore, a break of this line opens the door for a sell-off towards better support at 2830c-2840c. In order to break-out to the upside, this chart needs to find prices closing the open gap left from March which will allow for a test of 30c. For now, could straddle/strangle the 28c-2950c trading range, allowing for a possible upside exit and an eventual 28c-30c trade or higher.
TAGS – Feed Grains, Soy & Oilseeds, Wheat, North America