SPREADS

March crush trades to 1.02c/bu while oilshare trades to 34.82%.  March/May meal trades from $3.90 to $4.10, and begins on the narrower side.  March/May corn widens out to new lows at 7c from 6 1/2c.  March wheat /corn trades from 1.43c/ to 1.46c.  Dec/March corn trades out to 14 1/4c as Dec prepares to expire tomorrow.

PALM OIL

Feb. crude oil up 9 ringgits, with cash trading $7.50/mt higher.  

NEWS

Stocks are slightly lower down 35 pts awaiting news from the China/US trade negotiations.  Crude is higher trading up to $59.19/barrel, while the US dollar trades up to 97.22.   

CALLS

Calls today are as follows:

beans: 3 1/2-4 lower

meal:  .40-.80 lower

soyoil:  15-20 higher

corn:  1 higher

wheat:  steady/lower

canola:  1.20-1.80 higher

BUSINESS

USDA reports 110,744 mt of corn sold to unknown for 2019/20

USDA reports 575,780 mt of corn sold to Mexico for 2020/21

USDA reports 1,074,420 mt of corn sold to Mexico for 2019/20

TECHNICALS

March Beans:  The market is backing away from recent highs of $9.15/$9.18 which is resistance to test trading range lows.  Would look for the market to trade just under $9.00 with support today at $8.99, but it could hold for an eventual $8.80-$9.20 trading range.  The uptrend is strengthening slightly with an ADX reading of 27.    On a weaker start would look for $9.00 to be challenged on the open.  Would not be surprised to see beans congest from $9.00-$9.10 and regroup for a challenge of $9.20 again.

key support: $8.99-$9.01

resistance:  $9.08/$9.10

possible range: much the same or higher

March Soyoil:  This market remains very strong with a failed head and shoulder top providing plenty of ammunition for bulls to test previous high trade at 3244c.  The strong two day advance this week is now met with what appears to be a bull flag formation, implying that higher prices are still ahead.  Layers of resistance are now located close to 32c, and a good close suggests that we challenge that at the open.  If wanting to sell the market and we take out 32c, would not be short as think that a test of 3220c-3240c will be the next stop. 

first support: 3175c

resistance:  32c/3220c

possible range: much the same 

March Meal:  Prices are lower to begin the day with trendline support close by at $298.00, and under that $296.00.   If needing to price, values closer to $295.00/$296.00 likely offer up a good opportunity to get something on the books.  The trend remains extremely weak with a trading range from $296.00 up to $306.00.

first support: $298.00

resistance:  $300.00/$301.00

possible range: much the same

March Corn: Prices took out major support at $3.75 for a trip to double lows at $3.71/$3.72.  The pattern is consistent with layers of resistance building which leads to new market lows eventually.  Double lows today at $3.71 mark support, and the chart still has to verify that this level can hold.  

first support: $3.69/$3.71

resistance:  $3.75

possible range: much the same

March Wheat: Trending lower and making a case to test $5.11 eventually and then $5.05.  Resistance moves down to $5.23 today and support is located at $5.15.  Would look to begin to scale down covering short positions from $5.05-$5.11 should we go there, and perhaps lighten up under $5.20 starting at $5.15 as well.

first support: $5.15 

resistance:  $5.23

possible range: much the same 

MARCH BEANS

Prices are beginning the process of carving out a reasonable trading range heading into the holiday season, and ultimately the January report.  Could straddle/strangle the range from $8.80-$9.20, as the chart has had a nice bounce but at this point may seek the mid-point level of $9.00/$9.05 as a level of equilibrium and overall value.  The bounce off the low of $8.83 helped to alleviate oversold extremes.  Triple highs at the top of the chart will lower key resistance, but think we head up there at some point for a re-test, much as we are heading towards the lower end again.  

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