SPREADS

Dec crush trades to 89.25c/bu while oilshare trades lower down to 34.66%.  Dec/Dec corn trades slightly weaker from 20 1/2c to 22 1/4c, while Dec/March narrows into 9 1/2c from 10c.  Nov/Jan beans trade from 4c to 4 3/4c after firming into 2 1/2c.  Dec/March meal trades from $1.80 to $2.50.  Dec wheat/corn trades from 1.70 3/4c to 1.74 1/2c.  

PALM OIL

Holiday

NEWS

Stocks are up 113 pts. with crude oil trading up to $39.42/barrel.  The US dollar trades to 92.78.  

CALLS

Calls today are as follows: 

beans:  5-7 higher

meal:  3.30-3.80 higher

soyoil:  8-10 higher

corn:  1/2 lower

wheat:  2 1/2-3 1/2 lower

canola:  .30-.60 lower

BUSINESS

USDA reports 327,000 mt of beans sold to China for 20/21.

TECHNICALS

December Corn: Strong support is located at $3.61 and would expect the market to hold if prices go there.  The current uptrend is still fairly strong with an ADX trend at 33, (anything over 25 is a strong trend), suggesting that pricing ideas and good pullbacks will be met with buying interest.  The new highs of the trade to $3.71 could still be tested until the uptrend channel is broken, with a close underneath.  The market would have to settle under $3.55 in order to turn the trend lower from sideways/higher.

first support: $3.61

resistance:  $3.67

possible range: much the same

December Wheat:  Prices continue trend lower with rallies failing, leading to lower prices.  However, the market has hit a key support level at $5.33, which for the moment has held.  However, the best support under the market is now located at the 100-day moving average of $5.25, which appears extremely likely to be traded.  Better lines of resistance are forming, with lower support less defined.  

The ADX trend is weakening as prices move lower, falling under 30 to 29.  

first support: $5.32/$5.33

resistance:  $5.42/$5.43

possible range: much the same or lower

November Beans:  the path of least resistance remains higher, with trade back towards the $10.00 benchmark.  The ability of the market to bounce off $9.85 is still suggestive of a market that has strength, and prices are going to test $10.00 again at the start of the trading session.  The ADX trend is still very strong at 42, so pullbacks will be buying opportunities until a top is placed.  Some new resistance lines are forming, however, from $9.98-$10.05, so have to monitor this one for potential topping activity.  Potential trading range is still from $9.75 to $10.10/$10.20 until a top is placed.

first support: $9.90

resistance:  $10.00/$10.02

possible range: much the same or higher

December Soyoil:  Prices hit a new trading range high at 3471c, with a pullback under 34c to 3397c.  The market broke out over a pennant formation, and a pullback to the top of the pennant would put prices at 3390c.  If a pullback occurs to 3390c would cover a partial short or try the long side of the market.  The presence of a new high yesterday still finds the market is bull market mode with a top target of 35c.

lower trendline support: 3390c

resistance:  3450c

possible range: much the same or higher

December Meal: Prices hit $317.00 but held for a nice bounce.  Weaker markets are not able to bounce back.  Therefore, the chance increases for another test of $328.00.  Look for prices to move into resistance again from $325.00 to $328.00.

first support: $321.00

resistance:  325.00

possible range: much the same or higher

DECEMBER MEAL

The overall trading range is from $305.00 up to recent highs of $328.00.  The uptrend remains intact, and prices held at key lines of support at $317.00.  The ADX is strong at 36, meaning pullbacks are still going to be met with buying interest.  The recent highs of $328.00 may therefore be tested once more, although failure against $325.00 would begin to place a market top.  The chart for now remains constructive, so would cover shorts at trendline or price the market on a pullback towards $318.00/$319.00.   

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