SPREADS
Sep. crush firms to 86.52c/bu, while oilshare is back below 34.0% to trade down to 33.79%. Sep/Dec corn trades out to 11c from 10 3/4c. Sep/Dec wheat trades from from 6 1/4c out to 6 1/2c. August/Nov bean inverse falls to 3 3/4c from 5c, and vs. an 11c inverse. Sep wheat /corn trades from 2.14 3/4c up to 2.17 1/2c.
PALM OIL
Holiday
NEWS
Stocks are 48 pts higher with crude oil firmer at $40.55/barrel. Futures have been congesting tightly around the $40/barrel level. The fan-favorite trade continues, that is to buy gold, (which trades to $1981.10/oz), and sell the US dollar, (which trades to 92.54).
CALLS
Calls today are as follows:
beans: 2 1/2-3 1/2 higher
meal: 1.40-1.60 higher
soyoil: 5-9 higher
corn: steady
wheat: 1 1/2-2 higher
canola: .30-.50 higher
BUSINESS
USDA reports 220,000 mt of meal sold to Philippines for 20/21.
USDA reports 114,300 mt of corn sold to Mexico for 20/21
TECHNICALS
December Corn: Major trend is lower with contract lows not far away at $3.22. A new down-trend channel has formed and prices are working into a new pennant pattern. Trendline resistance moves down to $3.29 and bottom of channel today crosses at $3.23 1/2. This remains the short-term target. Prices closed steady, and if one market trades into the red first think it's this one.
first support: $3.25
lower support: $3.23 1/2
resistance: $3.29
possible range: $3.25-$3.29
September Wheat: Prices remain sideways from $5.20-$5.50, using $5.35 as a pivot. Overnight trade once again towards the 200-day moving average of $5.36, which favors an eventual move over this level again. Trendline support on a break is $5.26.
first support: $5.26
resistance: $5.36
possible range: much the same
November Beans: Overall trading range is from $8.80-$9.12. The market put in reversal trade off $8.80 which finds it higher today. The turn higher from lower is constructive, so would expect pullbacks to find support. Upper trendline resistance is located at $9.01.
first support: $8.86-$8.87
resistance: $8.95/$8.97
possible range: much the same
December Meal: Overall trading range is from $290.00-$308.00. The market has good support at $298.00, and would expect it to hold for a trade back towards $301.00/$302.00. The 100-day moving average does cross at $298.00, reinforcing support.
first support: $297.50/$298.00
resistance: $301.50/$302.00
possible range: much the same
December Soyoil: Overall trading range is from 2960c-31c. Prices are congesting over 30c, with a corrective drop to 2980c holding for higher trade. The chart has the 200-day moving average located at 3050c but is making a case for trade back over that level for another run at 31c. Would own a break toward 30c for a likely upside target of 31c.
first support: 3010c
resistance: 3050c
possible range: much the same or higher
DECEMBER CORN
The major direction is lower with new prices this week to the downside at $3.26 1/4. The down-trend still remains fairly weak with an ADX reading of 18. A new down-trend channel has now formed, with top of channel crossing at $3.32 and bottom of channel at $3.23 1/2. Target lows are $3.18/$3.20 if prices can take out contract lows at $3.22. Would have to continue to sell rallies unless a series of lows can form at $3.26 which could help build on a small corrective rally back towards $3.35. If one market goes red today, think it's this one.
TAGS – Feed Grains, Soy & Oilseeds, Wheat, North America