SPREADS
August crush trades to 79c/bu while oilshare trades to 46.43%. Today is the last day of the Goldman Roll as July futures wind down. July/Nov bean inverse trades to 84 3/4c but finds some life, trading back up to 96c. Jly/Dec meal widens out to new lows at $12.20 carry from $11.00. July/Dec corn hits a low of 82 1/2c for the morning with 88 1/2c highs. Sep/Dec corn trades from an inverse of 21 1/4c to 23 1/4c. Dec wheat/corn trades from 90c to 82 3/4c.
PALM OIL
August closed down 180 ringgits, setting the stage for a CBOT wash-out. Rapeseed is lower as well, trading down $25.00.
NEWS
Stocks are up 100 pts, crude oil trades to $70.80/barrel, and the US dollar trades higher to 90.37.
CALLS
Calls are as follows:
beans: 10-12 lower July, 22-24 lower Nov.
meal: 1.00-1.30 lower
soyoil: 200-220 pts lower
corn: 8-12 lower
wheat: 5-7 lower
canola: 24.00-25.00 lower
BUSINESS
No business reported
TECHNICALS
July Corn: The overall trading range is from $6.80 -$7.35, contract highs. The move higher yesterday fell short of taking out those contract highs, and we are back to trading sideways again. ON a start under $7.00, the past resistance of $7.05 returns, and we begin at key support at $6.85. Would look for further consolidation. Bottom of channel, should we go there, is $6.75, and would consider that a good buying opportunity.
first support: $6.85
resistance: $7.05
possible range: much the same
July Wheat: The market will begin on key support at $6.75, with the 50 day moving average at $6.80 now providing some early resistance. This market is still a good one to straddle/strangle trading from $6.60 - $7.00.
first support: $6.72/$6.75
resistance: $6.83/$6.85
possible range: much the same
July Beans: Prices are forming a trading range, but broke good support at $15.45 which turns prices back towards the key support level of $15.25. Would look for follow-through weakness as the trading range moves into the lower portion from $15.00-$15.50. On the break, resistance moves down to $15.45.
first support: $15.25/$15.30
resistance: $15.45/$15.50
possible range; much the same or lower
July Meal: Prices continue to display weakness now falling back to test $380.00. The low has been $378.30, and the target on a further break would be $375.00. Resistance now returns to the $385.00 level. If needing to price, could continue to exercise patience.
first support: $378.00
resistance: $384.00/$385.00
possible range: much the same or lower
July Soyoil: The contract high is 7374c, and the market broke through support at 70c which turned prices lower from sideways. This will be an interesting trade, as prices concluded the evening by closing right on major trendline support for the current uptrend channel. If needing to price, would do so, and wait to see if this major line of support is going to be broken.
major support: 68c
resistance: 70c
possible range: much the same or lower
NOVEMBER BEANS
The market hit a new contract high at $14.80 but there are now multiple tops that have formed on rallies to $14.65, with prices filling a gap at $14.38 and trending down towards the red line of lower support which crosses today at $14.25. On a weaker open, would look to likely test $14.25/$14.30, and a break of that level will broaden the trading range back to $14.00 again. The tops in place are now stronger than support, and when that happens prices usually work lower. Think we are heading into a broader $13.90 - $14.80 trading range.
TAGS – Feed Grains, Soy & Oilseeds, Wheat, North America