SPREADS

October crush trades to 63.09c/bu while oilshare sits just under 35.0% at 34.48%.  Nov/Jan bean spread firms into 3 12c from 4c as the bull market continues.  Dec/March meal trades into $1.60 from $1.90.  Dec/Dec corn narrows into 20 1/2c from 22 3/4c, and values that started the week at 27c.  Dec/March wheat trades into 8 3/4c from 9 1/4c.  Dec wheat/corn trades from 1.84 1/4c down to 1.81 1/4c.

PALM OIL

Nov. down 3 ringgits.  Palm oil imports for August to India were off nearly 14% in YOY terms to 734,351 mt due in part to a slow return in demand from the food service industry.  August soyoil imports fell 10.4% YOY to 394,735 mt.

NEWS

Stocks are higher, up 90 pts, with crude oil still struggling at $36.67/barrel.  The US dollar falls to 93.09.  US consumer prices rose in August due to higher costs for broad range of items, signaling that firmer inflation values are ahead as demand for goods continues to rebound from the pandemic.

CALLS

Calls are as follows:

beans:  4-6 higher

meal: 2.00-2.20 higher

soyoil:  10-15 higher

corn:  2 - 2 1/2 higher

wheat:  1-1 1/2 higher

canola:  1.90-2.00 higher

BUSINESS

USDA reports 262,000 mt of beans sold to China for 20/21

USDA reports 222,000 mt of beans sold to unknown in 20/21

TECHNICALS

December Corn:  Prices are moving higher and the low end of the trading range moves up to $3.50 from $3.40.  Target high is $3.69-$3.73, and then $3.80.   Good support for the day moves up to $3.59, and a break resulting from a more neutral to bearish USDA report would test $3.55.  Would continue to own pullbacks here as well given recent strength, though corn could be the first to head lower along with wheat on a break.

first support: $3.61

resistance: $3.69 1/2-$3.70

possible range: depends on the report

December Wheat:  The chart is constructive now with triple lows at $5.42, which also sits atop converging moving average lines.  Therefore, any break of $5.40 would be extremely negative and put a downside trade towards $5.30 into play.   Overall trading range is from $5.40-$5.68.

first support: $5.43/$5.45

resistance: $5.55/$5.58

possible range: much the same but depends on the report

November Beans:  Overall trading range is continuing to move higher, with the $10.00 level the obvious target.  The low of $9.75 was tested yesterday and held during the day and PM session.  The high of the night at $9.87 1/2 is against upper trendline resistance, with current overbought extremes.  However, it feels like it will take a test of $10.00 and 88% overbought extremes to take place before a larger reversal trade occurs.  Trade over $9.88 targets $9.95/$10.00.

first support:  $9.77/$9.81

resistance:  $9.88/$9.90

possible range: depends on the report

December Meal:  The rally remains in place with a new trading range high of $320.60.  The rally does not appear to be over, as once meal places a new high it tends to test it right away.  Support moves up to $313.00, and the target high back to $320.00-$323.00.  Look to probably go there.

first support: $318.00

resistance:  $321.00-$323.00

possible range: depends on the report

December Soyoil:  Prices congesting from 33c-34c in a pennant pattern.  Would look for a likely test of 34c as the market has pulled back to test 33c which has held.  

first support: 3315c

resistance:  3375c/3380c

possible range: depends on the report

DECEMBER CORN

The overall trend is higher but the market is not moving at the speed of soybeans.  Still, the chart was signaling higher trade by first building new support at the bottom from $3.55-$3.60, and then by forming an ascending triangle with break-out over current tops at $3.65.  Therefore, targets move back towards $3.70/$3.73 first, and then $3.75.  The formations suggest that prices will eventually get there, but at a slower pace.  Would look to head into a $3.55-$3.75 trading range.

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