SPREADS
August crush trades to 97.28c/bu while oilshare trades to 47.87%. Sep oilshare trades to 47.27%. Sep/Dec corn spread is firmer with an inverse from 3 1/2c to 4 3/4c, while Dec/March carry narrows into 7c from 7 1/4c. August /Nov bean inverse finds lower values at 52c from 56 1/4c, while Sep/Nov trades from 11c down to 9c. Sep/Dec meal trades from $4.10 to $4.80 carry. Sep/Dec wheat trades from 8c to 8 3/4c carry.
PALM OIL
Holiday
NEWS
The stock market started the evening with 155 pt gains and is currently up 130 pts. The US dollar trades higher to 93.11 while crude trades in the red down to $65.78/barrel.
CALLS
Calls are as follows:
beans: 18-22 higher
meal: 4.80-5.20 higher
soyoil: 70-80 pts higher
corn: 12-12 1/2 higher
wheat: 13-15 higher
canola: 3.00 - $3.50 higher
BUSINESS
No business reported.
TECHNICALS
November Beans: The major direction is sideways but on the chart, pullbacks are getting higher and higher, suggesting that we could extend gains back over $14.00. Trade over $14.30 would directly target $14.50 with little back resistance. Stronger markets show the ability to bounce, and therefore would cover a short on a break back towards $13.85 should we go there. The close was solid, so would look for the continuation of a $13.70-$14.30 market or higher.
first support: $13.85 /$13.88
resistance: $13.98/$14.05
possible range; much the same
December Meal: Overall trading range is from $355.00 to $385.00, and the market could head back to $375.00 if it opens over $370.00 again. Look for a retracement to the upside as prices retrace the break from yesterday. If needing to price or cover a short, first support moves up to $368.00.
first support: $368.00
resistance: $372.00/$373.00
possible range; much the same
December Soyoil: The chart placed a new high for the move up at 6634c before breaking to 6220c yesterday. Hard breaks continue to be met with buying interest and stabilization. Would continue to view pullbacks as buying opportunities for a market that could trend back towards 66c to 67c. Look for further congestion trade today and think that 6350c could find support for a move up to 65c.
first support: 6330c to 6350c
resistance: 6430c to 6440c
possible range: much the same
December Corn: The market will fill a gap at $5.73 1/2, and the ability to keep $5.50 intact as support was impressive. If we are going to fill the gap and establish a $5.30 - $5.80 trading range, today appears to offer the best chance for further upside. The good settlement will likely entice buyers on pullbacks.
first support: $5.55 to $5.56
resistance: $5.65/$5.69
possible range: $5.58 - $5.68/$5.70
December Wheat: The market has now bumped up the trading range, and appears to be ready to target $7.30/$7.35. Momentum is higher, and support moves up to $7.15/$7.17 on a morning pullback. Overall, the market remains well bid, but may have to congest some of its previous gains. Look for a possible $6.90-$7.35 trading range to form given the price direction.
lower support: $7.08/$7.10
first support: $7.17
resistance: $7.25/$7.30
possible range: $7.17 - $7.27/$7.30 or lower
SEPTEMBER WHEAT
The major trend is higher as prices climb over $7.00 towards the last peak high posted at $7.23 back in May. Pullbacks are going to see support as the trading range is extended to the upside. Could own the market against $7.00 as prices are not yet significantly overbought. Look for prices to target $7.25 as there is not much back resistance, and previous tops at $7.05 could serve as support as prices climb. Overall, the chart appears to offer the possibility of a $6.80 - $7.30 trading range.
TAGS – Feed Grains, Soy & Oilseeds, Wheat, North America