SPREADS

March crush trades top 1.08c/bu while oilshare moves into steady territory from lower at 33.70%.   Bean spreads are still wide with Jan/March trading from 14 1/4c out to 15 1/4c.  March/May beans trades from 14 1/4c to 14 3/4c.   March/May meal narrows into $2.60 from $2.80, and from values that were over $3.00.  March wheat/corn trades a narrow 1.46 1/4c to 1.47 1/4c.  

PALM OIL

Feb up 40 ringgits and cash offers $28/mt higher.  

NEWS

Stocks are higher up 52 pts extending gains on a strong jobs report.  Employers added 266,000 jobs in Nov. and unemployment matched a 50-year low at 3.5% amid signs that the US economy is withstanding a global slowdown.  Money flows unwind previous buy crude/sell the US dollar trade.  The US dollar trades up to 97.69 while crude falls to $57.70/barrel.

CALLS

Calls today are as follows:

beans:  5-7 higher

meal:  1.20-1.50 higher

soyoil:  20-25 higher

corn:  1 higher

wheat:  1 higher

canola:  3.30-3.50 higher

BUSINESS

USDA reports the sale of 245,872 mt of corn sold to Mexico for 2019/20.

TECHINCALS

Jan Beans:  Futures bounce off the lows of the move at $8.67 1/2 and now are going to bump up against stiff resistance at $8.95/$9.00.  Would look to eventually trade back over $9.00, but for today think that resistance at $8.95/$8.98 may provide a level at which one can take a profit if long.  Bears may want to enter at this level as well.   Would also look for a pullback to $8.82/$8.85 to hold as support moves higher and we have cleared this interim resistance.

first support: $8.85/$8.87

resistance:  $8.95/$8.98

possible range: much the same or lower

Jan Meal:  Prices popped off contract lows at $292.60 to trade towards the 100-day moving average of $304.00.  Pullbacks may now be buying opportunities, and feels like this rally is not complete.  Look for a stall towards the $304.00 resistance level.

first support: 301.50/$302.00

resistance:  $303.90/$304.00

possible range: much the same or lower

Jan Soyoil:  Probably working into a 30c-32c trading range, and for now the market is moving sideways/higher again.  However, would note that the PM session high at 3096c is right against long term trendline resistance.  The market may approach 31c against, but it could hold as prices trade back and forth between 30c-31c.   One should own any move through 31c as it validates the 30-32c trading range, and there is little back resistance to stop a higher move from 31c-3150c from taking place.

trendline support; 3045c

resistance:  31c

possible range: much the same 

March Corn:  Prices continue to meander in a sideways trading range from $3.73-$3.85.  However, when left on its own without the pull of a higher bean market, the price action gives way to lower prices.  In this regard, would expect that we may test $3.75 again to see if it can hold.   Trendline resistance today is $3.82 and trendline support is $3.74.

first support: $3.76 3/4

resistance:  $3.80

possible range: much the same

March Wheat:  Big picture trading range continues to be from $5.05-$5.45, and prices are consolidating around $5.22.  Trade back under $5.22 will trigger stops towards $5.18, and eventually down towards $5.11, where larger support is located.  On a firmer open, would look for the market to test resistance at $5.28/$5.29, but failure against this level could result in another test of $5.22.

key support: $5.22

resistance:  $5.28/$5.32

possible range: much the same or lower

MARCH CORN

The market is trading from recent lows of $3.73 up to $3.85, recent highs.  However, in the big picture, the rallies continue to fail and the path of least resistance continues to be lower.  Very good crossing lines of support today are located at $3.74, and we may go there if prices cannot get above $3.80.  Contract lows are nearby at $3.65 3/4, which could be a target that corn bears are waiting for.

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