SPREADS

Dec crush trades to 87c/bu while oilshare is at 33.79%.  Volume remains huge for the March/Dec corn spread which narrows into 10 3/4c from 11c.  Dec wheat weakens vs. corn with the spread trading at 1.27 1/2c to 1.28c.   Dec 19/Dec 20 corn trades back out to 22 3/4c.  Dec/March wheat widens back out to 6 1/2c from 5 3/4c.  

PALM OIL

Holiday

NEWS

Stocks trade higher, up 90 pts.   The US dollar trades to 98.89.  Crude trades to $56.24 /barrel lows.  

CALLS

Calls are as follows:

beans: 2 1/2-3 higher

meal:  .30-.50 higher

soyoil:  15-20 higher

corn:   1 1/2-2 lower

wheat:  3 1/2-5 lower

canola:  1.20-1.40 higher

BUSINESS

USDA reports 135,000 mt of meal sold to the Philippines for 2019/20.

TECHNICALS

Jan Beans:  Overall trading range is from $9.20-$9.60, with a break to the downside of the previous $9.40-$9.59 trading range.  Trendline support today crosses at $9.33, and for the day it appears as though we could hold it.  Would look for prices to trend higher and test $9.39/$9.40, previous support now turned into minor resistance.  Would prefer to own pullbacks in this market, and on a higher start think we see if prices can head up towards $9.40 again.

first support:  $9.32/$9.35

resistance:  $9.39/$9.40

possible range; much the same or higher

Dec Soyoil:  Major trend is higher and the market scored fresh trading range highs at 3152c last week.  Would look for the best support to be under the market at 3050c, though 31c seems to offer a good support level from which to own the market.  Prices could rally back towards 3140c, which is the best major resistance level.  Look to probably test it at some point.  Target high moves back to 32c.

first support: 31c

resistance: 3130c to 3140c

possible range: much the same

Dec Meal: Prices begin on major support at $303.00, which we tested.  A break of $303.00 opens the door to test $301.00 which is at the bottom of a current $301.00-$303.00 trading range.  If short would probably scale - down covering, and if needing to price, this is a good level at which to do so.

first support: $302.80-$303.00

resistance: $305.00

possible range: much the same

Dec Corn:  Trading range is from $3.78-$4.00, and rallies continue to become selling opportunities.  The market begins on the trading range low of $3.84, and resistance moves down to $3.88.   Would look for rallies to continue to find selling interest, and the best support for the move is located at $3.78, should we go there.  

first support: $3.82 1/2 to $3.83

resistance: $3.88

possible range: much the same  

Dec Wheat:  The trading range is from $5.04 - $5.35, and the market is correcting lower.  On a lower start would look for resistance to move down to $5.23 and for the market to possibly test the $5.08/$5.10 level.  If short, would be scale down covering at this point, as we would be approaching the lower end of the recent trading range.

first support: $5.08/$5.10

resistance: $5.18/$5.23

possible range: much the same 

NOVEMBER BEANS

Trading range is from $9.20-$9.59, but strong lines of support cross at $9.33/$9.35, which is where we begin the day.  Better resistance now moves down to $9.50 with the trade towards $9.35.  However, if wanting to own the market, this is one of the first good places to do so, with a tight sell-stop in case we breach $9.30.  Under $9.30, the market could trade down towards $9.20, and at that level would cover a short or try the long side of the market.  Could also straddle/strangle the market between $9.20-$9.60 with an upside exit.  

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