SPREADS
Jan crush trades to 1.05c/bu while oilshare trades to 32.38%. December open interest continues to liquidate. Dec/March corn trades out to 7c from 6 1/4c, while the Dec/Dec inverse trades from 14c down to 11 3/4c. Dec/March wheat trades from 5 3/4c out to 7c. March wheat/corn trades from 1.90 1/4c to 1.85c. Jan/March bean inverse trades out to 2c carry from 1 1/4c.
PALM OIL
Feb. closed up 33 ringgits higher, ending at 3,282 ringgit/mt. AmSpec Malaysia estimated palm oil exports over the Nov 1-25 period at 1.145 mmt, down from 1.412 mmt in their Oct. 1-25 estimate.
NEWS
Stocks are down 60 pts as the US dollar trades to 30-month lows at 91.94. Crude trades up to 6-month highs at $45.72/barrel as vaccine hopes continue.
CALLS
Calls are as follows:
beans: 2-4 higher
meal: 3.00-3.50 higher
soyoil: 40-45 higher
corn: mixed
wheat: 1/2-1 higher
canola: 80-1.40 higher
BUSINESS
No business announcements
TECHNICALS
Jan Beans: Trading range is from $11.75 - $12.00, but prices can bounce back and re-test recent highs. The trend remains very strong, and typically when markets continue to hang close to recent contract highs is an indication they will go through. Look to re-test $12.00 again, and perhaps place a new ctr high once again. Pullbacks will continue to see support.
first support: $11.90
resistance: $12.000
possible range: $11.90-$12.00 or higher
Jan Meal: A new contract high this morning is in place at $401.30, and therefore we could extend gains after the open. Good support moves up to $390.00, and would look for an eventual target high closer to $405.00.
first support: $398.00
resistance: $401.00-$403.00
possible range: much the same
Jan Soyoil: Trading range is from 37c-39c, but the overall target high is located at 3950c. Would look for any sell-off towards 38c to be a buying opportunity for a market that could trade back over 39c.
first support: 3820c
resistance: 3890c
possible range: much the same
March Corn: Double tops are located at $4.35 3/4, and the market is in the process of possibly challenging them. Support moves up to $4.28 on further weakness. Prices are very close to contract highs, so would look for a test today, and a trade above $4.35 3/4 targets $4.40 to $4.50.
first support: $4.28
resistance: $4.35
possible range: much the same or higher
March Wheat: The market turned higher from lower and traded over the recent top of $6.19 which escalated a further rally to $6.22 3/4. Good support on a pullback moves up to $6.10 and would look for $6.25 to offer up the next line of good resistance.
first support: $6.10/$6.12
resistance: $6.22/$6.25
possible range: much the same
JANUARY MEAL
The market had multiple tops at $399.00, but setbacks over the last week remained shallow with a pullback only able to trade back to $388.00 and holding. The ability of the market to stay so close to recent tops is constructive behavior, implying that the path of least resistance would be higher. The latest uptrend line in the top blue with the horizontal line forms an ascending triangle, and direction out of those formations is to the upside, (as opposed to a descending triangle found in down-trending markets). New ctr highs were placed in Jan meal at $401.30 with a good close. Look for a target high of $405.00, and the good close should find upside follow-through.
TAGS – Feed Grains, Soy & Oilseeds, Wheat, North America