SPREADS
Dec crush trades higher to 1.03c/bu while oilshare trades firmer as well to 46.20%. Dec/March corn trades from 7 3/4c carry to 8c. Dec 21/22 corn inverse trades from 21c to 18 1/4c. Dec/March wheat trades from 12c to 12 1/4c, new lows. Dec wheat/corn trades from 1.72c to 1.69c. Nov/Jan bean spread trades from 9 1/2c to 9 3/4c, while Nov 21/22 trades from 31 1/2c to 28 3/4c. Dec/March meal trades from $4.20 to $4.30.
PALM OIL
Dec crude oil closed up 142 ringgits to 4,597 ringgit/mt.
NEWS
Stocks are up 119 pts. with crude oil trading down to $73.89/barrel, and the US dollar into new year highs of 94.50.
CALLS
Calls are as follows:
beans: 1-3 higher
meal: 1.20-1.60 lower
soyoil: 40-50 pts higher
corn: 1-1 1/2 higher
wheat: 3-5 higher
canola: 4.00-5.00 higher
BUSINESS
None reported.
TECHNICALS
November Beans: Overall trading range remains a large $12.75-$13.00 level. Prices continue to congest tightly forming a mini-range from $12.70-$12.90. The 200-day moving average is located just under the lows of the day at $12.80, so breaking that average would open the door to further selling. The ADX of 9 shows that there is little trend here, but think the report could move the market out of its current doldrums. While the price action remains well bid, the chart looks more vulnerable to downside at the current time, as returning to moving averages instead of moving up and away is not friendly price action.
first support: $12.75/$12.78
resistance: $12.90/$12.92
possible range: depends on the report
December Meal: Overall trading range is compact, but the tendency has been to congest in a zone for a bit before breaking down further. Current trading range is from $335.00 - $345.00, with prices starting weaker today. Multiple support levels are at $338.00, which may be tested, but could hold into the numbers. The report could break the market out of its current sideways pattern. Target low is $330.00 under $335.00 lows.
first support: $338.00
resistance: $341.00
possible range: depends on the report
December Soyoil: Overall trading range is from 55c - 60c. The market has been trending sideways/higher, and pivoting around 58c. A good close today suggests we target 59c, and ultimately think we see 60c, the 100-day moving average. Chart is friendly.
first support: 5750c
resistance: 5850c to 59c
possible range: depends on the report
December Corn: Overall trading range is from $5.15 to $5.40, but prices broke out to the upside this week. Target high and very good resistance should we go there is $5.50/$5.52, and may be difficult to overcome. Prices walked back to test $5.30/$5.33, which held for new highs this Am. Don't think the upside is over.
first support: $5.35
resistance: $5.41/$5.43
possible range: depends on the report
December Wheat: Overall trading range is from $6.90-$7.35. Prices begin the morning well bid, so would look for an extension of prices to the upside after the start of the day.
first support: $7.10/$7.12
resistance: $7.20/$7.22
possible range: depends on the report
DEC/MARCH WHEAT SPREAD
Trade has been weakening with new lows recently at 12 3/4c carry from 11c. Major direction is lower, and the trendline support surfaces on any widening out towards 12 1/2c to 13c. Since the major direction is lower and we saw new lows placed this week, the downside does not feel over. Would look for this spread to remain in a 10c to possible 13c level.
TAGS – Feed Grains, North America