SPREADS
Crush trades down to 91c/bu with oilshare at 45.89%. Spreads were firmer with Dec/March corn narrowing into 7c from 7 1/2c. Dec 21/Dec 22 trades from 26 3/4c to 24 1/4c inverse. Nov/Jan bean spread trades from 8 1/2c to 9c, while Nov 21/Nov 22 trades from 30c inverse to 34 3/4c. Dec/March wheat trades from 11 1/2c out to 12c carry. Dec wheat/corn trades from 1.80c down to 1.74c.
PALM OIL
Closed for public holiday.
NEWS
Stocks are slightly lower with crude oil trading down to $72.39/barrel. The US dollar is firmer up to 92.79, as there seems to be a bit of unwinding in this spread today.
CALLS
Calls are as follows:
beans: 1-3 higher
meal: 1.80-2.00 higher
soyoil: 60-80 lower
corn: mixed
wheat: 4-6 lower
canola: 5.00-6.00 higher
TECHNICALS
November Beans: Prices are trending sideways / higher, and the market has a well bid feel to it on pullbacks. The lower end of the trading range has been reinstated at $12.80, while overhead resistance is from $13.35. This has essentially been the trading range before the USDA report, and as we progress into harvest looks to become the range once more, at least technically speaking. For the day would look for pullbacks to continue to see buying interest, but prices will really pick up steam higher if we can take out the last high at $13.08 which led to our current lows.
first support: $12.93/$12.95
resistance: $13.05/$13.08
possible range: much the same or higher
December Meal: Overall trading range is from $335.00 - $375.00. The market walked back to test support at $340.00 which held. Would look for prices to now move into a likely congestion phase from $340.00-$350.00. The chart is open to more strength.
first support: $340.00
resistance: $345.00
possible range: much the same
December Soyoil: The market is lower with prices correcting on the back of profit-taking in oilshare. Would look for a pullback towards 57c to be a buying opportunity for a market that could easily rally towards 60c. The 58c level appears to be a pivot point.
first support: 57.50c
resistance: 58.50c
possible range: much the same or lower
December Wheat: Trading range now with the rally towards $7.16 3/4 showing some technical weakness as prices move away and lower into the close. Would say that this market is now open to re-testing $6.90-$7.00, but key support is also at $7.02, a swing point. Wheat could be prone to a bit of a pullback here. Major direction is sideways, but pullback could hold as we establish a $6.80-$7.20 trading range.
key support; $7.01/$7.02
resistance: $7.15/$7.18
possible range: much the same
NOVEMBER BEANS
Prices are sideways with a series of lows at $12.80 now offering up good support. The market has now traded just over $13.00, with $13.05/$13.10 now as a level of resistance. The price action is fairly muted, and would still look to stay in a trading range from $12.80-$13.30 for now. Best resistance is at the 100-day moving average overhead at $13.50, which still feels a very long ways away. While the corn ADX is strengthening, beans are at a weak 10. Look for a sideways chop to continue.
TAGS – Feed Grains, North America
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