SPREADS 

October crush trades to 1.09c/bu while oilshare trades to 33.33%.  Corn spreads were sharply lower; the Dec 19/Dec 20 inverse of 3c is now a 24 3/4c carry post report.  Dec/March corn trades from 12c to 12 1/2c.  Dec wheat/corn trades from 89 1/2c to 94c.   Sep/Dec meal trades from $5.10 to $5.30, while Dec/March meal trades from $4.60 to $4.80.  Nov /Jan beans trade from 13 1/4c to 13 1/2c.  

PALM OIL

September closed up 35 ringgits.   Malaysian Palm Oil Board (MPOB) data released estimated July 2019 production at 1.738 mmt, higher than analyst's expectations at 1.692 mmt but higher exports offset.  

NEWS

Stocks are slightly lower down 50 pts while gold prices jump towards new record highs.  The US dollar is firmer at 97.63.  Crude breaks to $54.21/barrel.

CALLS

Calls are as follows:

beans:  2 1/2-3 higher

meal:  1.20-1.50 higher

soyoil:  10-12 lower

corn:  11-12 lower

wheat:  3 1/2-4 lower

canola:  .80-.90 lower

TECHNICALS

Nov Beans:  Major direction is sideways from $8.55-$8.95.  A new line of resistance has now formed from $8.92/$8.95, and one could be short against it for a possible pullback again towards $8.65.  Any push through $8.95 now will trigger more buying activity given the new resistance forming.  

first support: $8.72/$8.75

resistance:  $8.91

possible range: much the same

Dec Meal:  The chart is beginning to form a base of trade from $295.00-$300.00, with a contract low still in place at $291.50.   Today's price action suggests we could correct oilshare a bit, which may keep meal afloat over $298.00.  But any trade under $295.00 will trigger fund selling and a possible challenge of recent contract lows.

first support: $298.00/$299.00

resistance:  $302.80/$303.00

possible range: much the same

Dec Ssoyoil:  Major direction is higher and the chart broke-out to the upside when it traded over 2930c.  Double highs are now located at 3018/3019c.  Pullbacks will invite more buying activity given the strong price action.  A good pullback that may hold suggests would be to trade back towards 2945c/2950c, where moving averages are located.

key lower support: 2945c/2950c

resistance:  3020c

possible range: much the same 

Dec Corn:  Prices are lower from higher and despite the sell-off we are not yet into deep oversold territory.  Would look for the previous May 13 gap at $3.77 1/2 to be filled, as they usually attract prices and hold on a first go around.  If we can stabilize trade, the next move is probably back into $3.88/$3.92, which now becomes resistance in what could be a possible $3.75-$4.00 trading range.

first support: $3.72/$3.75

resistance:  $3.85

possible range: much the same 

Dec Wheat:  The market is lower from sideways, with the target low now in sight at $4.65.  For the day, we are posting double lows at $4.72.  Wheat is notorious for holding double lows, but if they are violated would look to go to $4.65 sooner rather than later.

first support: $4.71/$4.72

resistance:  $4.85/$4.88

possible range: $4.71-$4.81 or higher

NOVEMBER BEANS

Trading range is from $8.55-$8.95.  There are three highs that seem to be forming minor resistance, and we are under all three moving averages.  Would look for the market to eventually test $8.65 once again, using $8.75 as a pivot point.  For the morning could sell against the minor trendline with a close stop nearby.  

TAGS – Feed Grains, Soy & Oilseeds, Wheat, China