SPREADS

Sep. crush trades higher to 89.51c/bu while oilshare trades over 35.0% to new highs of 35.30%.    Sep/Nov beans trades from 2 3/4c to 3 3/4c carry.    Sep/Dec corn trades from 10 3/4c to 11c.  Sep/Dec meal trades from $6.00 to $6.40 carry.  Wheat spreads are wider, with Sep/Dec trading from 7 3/4c out to 8 1/4c.  

PALM OIL

Oct. up 37 ringgits on expectations for lower July production and inventories.  Palm touched its highest level since Feb. 10.   Strong palm oil prices continue to support soyoil futures.  

NEWS

The Dow is off 59 pts in early trade as crude oil congests around $40/barrel.  The US dollar trades down to 93.27.

CALLS

Calls today are as follows:

beans:  4-6 lower

meal:  1.50-1.80 lower

soyoil:  10-14 higher

corn:  2 - 2 1/2 lower

wheat:  3-5 lower

canola:  2.00-2.50 higher

No business announcements

TECHNICALS

November Beans:  Prices continue to grind sideways with strong support from $8.85 and trendline resistance at $9.00.  Would look for price action to tell the story here is ongoing sideways trade at these levels, as prices head higher and lower without much follow-through.  Very strong support on a heavy break crosses at $8.83, and if we go there think it holds. 

first support: $8.86-$8.88

resistance:  $8.98

possible range: much the same

December Soyoil:  Major direction is higher and this market has established a clear trend upward.  The break to 2960c proved to be an excellent buying opportunity and the low end of a trading range that has yet to hit its overall high.  However, trendline resistance is located at 3180c and for the day turned back a higher trade.  Would continue to own breaks in this market for an eventual trade towards 3212c. 

first support: 3105c to 3110c

resistance:  3180c

possible range: much the same or higher

December Meal:  Prices broke trendline support at $294.00, and therefore would look for the market to trend down towards $292.50.   The break of trendline support continues to find prices in a sideways $290.00-308.00 trading range.  If prices break towards $291.00-$292.00 would cover a short or try the long side.

first support: $292.50

resistance:  $295.00

possible range; much the same

Dec. Corn:  Prices are sideways from $3.25 1/2-$3.30, but this market has a tendency to break down further when the main direction is lower and prices move sideways.  Resistance now moves down to $3.29, and would look for a challenge of $3.25 at the open.  Breaking $3.25 targets $3.18-$3.22.  

first support: $3.24 1/2-$3.25 1/2

resistance:  $3.28 1/2-$3.29

possible range: much the same

Sep Wheat: Prices broke through key support at $5.20 for a fall to $5.15.  The market closed at the weaker end of the trading range which suggests that we could see opening follow-through weakness.  Look to target $5.12-$5.15 first, but under that $5.05/$5.08 is the next target low.  Think we probably are headed there.

first support: $5.12/$5.15

resistance:  $5.23/$5.25

possible range: much the same or lower

DECEMBER CORN

The overall trading range is from ctr lows of $3.22 to highs of $3.42.  The main direction is lower, and rallies continue to fail.  The market trend is still fairly weak with an ADX reading of 19, which is why follow-through is lacking.  The down-trend channel is the major driver of price as we head lower.  For the day, channel support does not cross until prices hit trendline at $3.23 1/2.  The day begins with a direct challenge of recent lows at $3.25 1/2.  Look to probably test ctr lows sooner rather than later.  

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