SPREADS

Dec crush trades to 93.70c/bu while oilshare trades to 45.51%.  Spreads are firmer with Dec/March corn trading from 7 1/2c to 7 3/4c, while Dec 21/22 inverse trades from 21 3/4c to 20 3/4c.  Dec/March wheat carry is slightly wider trading from 11c to 11 1/4c.  Dec wheat/corn trades from 2.02 1/2c to 1.99c.  Nov/Jan bean carry trades from 9 1/2c to 9 3/4c, while NOv 21/22 trades from 32c inverse to 28 1/2c.  Dec/March meal trades from $5.00 to $5.20 carry.

PALM OIL

Dec. down 46 ringgits to 4,395 ringgit/mt.  James Fry, a veteran analyst and chairman of LMC International, said that global vegoil prices may ease in the next 6-12 months as production recovers.

NEWS

Stocks were up 150 pts but this am are giving back half those gains, up 75 pts.  The feature remains higher crude which trades at $75.33/barrel vs. the US dollar at 93.49.  

CALLS

Calls are as follows:

beans: 2-3 higher

meal:  2.20-2.60 higher

soyoil:  50-60 pts lower

corn:  1-1 1/2 lower

wheat: mixed

canola:  5.00-6.00 lower

TECHNICALS

November Beans:  Prices trending sideways from $12.65-$12.95.  A new high was placed last night at $12.92 1/2, but it is right into key resistance from $12.95/$12.98 which could stand into the report.  Chart price action has been slightly sideways to higher, and as such a pullback towards $12.75 may stand for the day should we go there.

first support: $12.80/$12.82

resistance:  $12.90/$12.95

possible range: $12.80-$12.95 or lower

December Meal:  Prices are trending sideways between $335.00-$345.00.  The chart remains close to the bottom of the trading range, which is never a sign of inherent strength.  However, this $335.00 -$345.00 price congestion will either be a nice support level to rally from, or tougher resistance in a market that could target $330.00.  For now, think the path of least resistance is higher and that we could test $345.00 with a possible upside exit.  Note that in as many times in several weeks that the $338.00 level has held to put in a line of visual support. 

first support: $339.00-$341.00

resistance:  $343.00-$344.00

possible range: much the same

December Soyoil:  Prices are forming a trading range off the low trade last week at 54c to 55c.  Weaker values this AM show a turn of direction lower from the peak high at 58c.  Would look for 56c to possibly be tested, but also think it is a buying opportunity in a market that still has the capacity to test 60c.

first support: 5650c

resistance:  5750c

possible range: much the same or lower

December Corn:  Prices rangebound from $5.15 - $5.35.  The chart has made a statement so far that $5.10 could be a temporary low heading into the stocks report.  Would look for further congestion trade from $5.20 - $5.30 this week, and for any break towards $5.10-$5.15 to also hold as a short-covering or pricing opportunity.

first support: $5.20/$5.22

resistance:  $5.25-$5.28

possible range: much the same or lower

December Wheat:  Prices are now consolidating from $7.00-$7.35, with the chart placing a new high for the move up into key resistance at $7.28 1/2.  Since a new high was placed overnight, would look for a pullback towards $7.22/$7.25 to perhaps initially hold.  We begin right there, and think we could still target $7.33 to $7.35 before finding a healthier pullback.

key support: $7.17-$7.22

resistance:  $7.28/$7.33

possible range: much the same

DECEMBER CORN

Similar to beans the corn chart is trending sideways though more towards the upper portion of recent ranges than along the lows.  The 200- day support line crosses at $5.10 with the 100-day overhead at $5.50.  ADX shows lack of trend at 13.  Daily and weekly indicators are looking as though they are trying to get into positive territory, which favors gains north of $5.25.   Price action still suggests that $4.97-$5.00 could hold as a harvest low, as corn prices attempt to move up and away from this all -important support level.

TAGS – Feed Grains, North America