SPREADS

March crush trades to 1.01c/bu while oilshare trades sideways at 36.43%.  Corn spreads are slightly weaker with July/Dec trading out to 2 3/4c from 2 1/4c.  July/Nov beans trades into 3 1/2c from 4 3/4c.  March/May meal trades from $4.00 to $4.20.  March wheat/corn trades from 1.63 3/4c up to 1.68 1/4c.  

PALM OIL

Down 4 ringgits.  The Malaysian palm oil board is expected to show production more than offset a slowdown in exports with stocks tightening by 8.5%, the lowest level since Nov. 2017.  There is some activity on the cash side, with both India and China stepping up to cover a bit.  India is still buying January shipments, with China also buying a cargo.

NEWS

Stocks down 23 pts as geopolitical jitters continues.  In terms of economic data, US companies added 202,000 jobs in Dec. led by robust hiring in construction, transportation and utilities, according to a private survey.  Big money takes profits on recent buy crude/sell the US dollar, with both reversing today.  The US dollar trades up to 97.23, while crude breaks to $61.31/barrel.

CALLS

Calls are as follows:

beans: mixed

meal:  .30-.90 higher

soyoil:  10-14 lower

corn:  1/2-1 lower

wheat:  steady/firm

canola:  .70-1.00 lower

BUSINESS

USDA reports 207,000 mt of corn sold to unknown for 2020/21.  

TECHNICALS

March Beans:  Sideways for now from $9.35-$9.50, and the lack of volume and trend is keeping prices locked in sideways trade.  However, would note that the market is trading in the upper portion of its recent trading range, so if long would be a bit cautious and perhaps liquidate part of it on rallies.  Would look for the tipping point to be $9.33, a 38% fib retracement and good support for now.  

key support: $9.33

first support: $9.37

resistance:  $9.47

possible range: $9.37-$9.47/$9.48

March Meal:  This market has the least amount of trend to it, with an ADX reading of only 10, meaning that follow-through is lacking in any direction.  Resistance, however, has been moving lower, with trendline today at $303.80 and key support at multiple lows of $300.00.  A break of $300.00 still offers major support not far away at $298.00.  Would continue to straddle/strangle this market from $295.00-$310.00, its current trading range. 

key support: $298.00

first support: $300.00

resistance: $303.80

possible range: $300.00-$303.80 

March Soyoil: Trading range is now from 3438c to 3567c, contract highs, with an open gap at 3429c.  The market gapped higher a few weeks ago, so any gap-lower price action would leave an island top trade.  Key support for the day is 3440c, and it appears as though we may test it again.  

first support: 3438c-3440c

resistance:  3490c to 35c

possible range; much the same 

March Corn: Prices are moving sideways / lower, to the downside of what was a slight uptrend channel. Funds are returning as sellers, which could pressure the market into the $3.80 level by report time. 

first support: $3.81

resistance:  $3.85

possible range: much the same

March Wheat: Prices are trading from $5.25-$5.65, and key support is $5.40.  Could own against this level, but any trade underneath turns prices lower from higher.  The chart is congesting around $5.50, which has been a starting point for a larger rally.  If short, would probably be taking something off the table since prices are closer to trading range lows currently.

key support: $5.40

resistance: $5.55

possible range: $5.42-$5.52 or higher

MARCH MEAL

Major trading range is from $295.00-$308.00.   The ADX trend is weak, so could straddle/strangle the market between these levels.  Better resistance is beginning to form at $305.00 which could trigger a trade back under $300.00 at some point.  However, long term support is still located from $297.00-$300.00 should we go there.  

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