SPREADS
Dec crush trades to 88.99c/bu while oilshare trades to 34.91%. Dec/Dec corn trades from 16 1/2c back out to 18 3/4c. Dec/March corn trades from 8 3/4c to 9 1/4c. Nov/Jan bean spread trades from 3 3/4c to 4 1/2c. Dec/March meal from $1.10 out to $2.00. Dec wheat/corn trades from 1.74 1/4c down to 1.67 1/4c.
PALM OIL
Nov up 67 ringgits, ending at 2,976 ringgits/mt. Malaysia's palm oil exports for Sep. rose 12% vs. August.
NEWS
Stocks are 375 pts lower with crude back below $40/barrel to a low of $39.42/barrel. The US dollar trades up to 93.59.
CALLS
Calls are as follows:
beans: 3-5 lower
meal: 1.50-1.70 lower
soyoil: 15-18 lower
corn: 2 -2 1/2 lower
wheat: 1 1/2-2 lower
canola: 1.10-1.50 lower
BUSINESS
USDA reports 264,000 mt of beans sold to China for 20/21
USDA reports 360,500 mt of beans sold to unknown for 20/21
USDA reports 120,000 mt of corn sold to unknown for 20/21
TECHNICALS
November Beans: The bull market continues with a new contract high placed at $10.18 14. Prices open around the congestion level yesterday, so if $10.00-$10.02 holds look for another trip towards the high. Trendline resistance for the day moves back to $10.20-$10.22. Target high for an extreme move is $10.35.
first support: $10.02/$10.04
resistance: $10.15 / $10.18
possible range: much the same or higher
December Meal: Trend is higher, and the market did approach its recent high at $328.00. This is now a double high which could present some resistance. Would look for prices to break towards $318.00/$321.00 which is good support. A current top is not evident yet.
first support: $321.00
resistance: $325.00
possible range: much the same
December Soyoil: Placed a new high for the move up at 3519c. The market could still sell-off towards 34c again and be in a bull market. For the day would look for a sell-off towards 3430c at the very least, and a possible return trip higher again should it hold.
first support: 3450c
resistance: 35c/3525c
possible range: much the same
December Corn: Prices hit a target high of $3.73 with a start back under $3.70. Could begin to look for a $3.55-$3.75 trading range to emerge. Trendline support is $3.61 should we go there, with first support at $3.65.
first support: 3.66/$3.67
resistance: $3.72/$3.73
possible range: much the same or lower
December Wheat: Prices in a trading range from $5.25 - $5.65. The market starts slightly lower and back below $5.42, which could trigger a further sell-off towards $5.33 once again. Bottom support is located at $5.25 on a good break, and could cover a partial short if we go there.
first support: $5.35
resistance: $5.45
possible range: much the same
DECEMBER CORN
The overall trading range continues to move higher with an ADX reading of 33, which is improved from what it was, but not as strong as uptrends in soyoil or beans. The high of the night was up against the current channel uptrend, which no doubt is why profit-taking was noted. Prices could continue to climb higher, but will depend on beans. Very strong support is located at $3.58/$3.60, and would try the long side or cover a short should we go there. Overall trading range is $3.55 to possible highs of $3.75.
TAGS – Feed Grains, Soy & Oilseeds, Wheat, North America