SPREADS
July crush trades to 88.94c/bu while oilshare trades to 42.18%. Spreads are higher this morning with July/Nov bean inverse firming to 1.65c from 1.56c, while July /Dec meal trades to $23.60 from PM lows of $21.30. July/Dec corn strengthens to 1.05 3/4c after selling off to below 90c as new money came into the Dec. cr. July wheat/corn trades from 17c up to 39 1/2c.
PALM OIL
July ended lower down 62 ringgits /mt. Malaysia's end-April palm oil inventories rose to a five-month high, beating market estimates as production grew for a second consecutive month. Ending stocks increased 7.1% vs. the prev. month to 1.55 mmt, its highest since November. Malaysian Palm Oil Board data for April estimated April 1010 exports at 1.338 mmt, above analysts’ forecasts at 1.300 mmt, and over the March pace at 1.188 mmt.
NEWS
Crude oil is higher trading up to $65.75/barrel, after a major US fuel pipeline operator had to shut down due to a cyberattack. Traders add to more buy energies/sell US currency trade. The US dollar trades down to 90.05. Equities are 120 pts higher.
CALLS
Calls are as follows:
beans: 1-2 higher
meal: .80-1.00 higher
soyoil: mixed
corn: 2 -3 lower
wheat: 14-15 lower
BUSINESS
USDA reports 280,000 mt of corn cancelled for delivery to China for 20/21
USDA reports 1,020,000 mt of corn sold to China for 21/22
TECHNICALS
July Corn: A new and higher trading range is starting to form with current lows of $7.00 and possible highs of $7.50. Good lower support moves up to $7.22 on any break of size, and could stand as a morning low. Look for the strong possibility of trading both sides of unchanged, and for the market to test prev. contract highs of $7.35 1/4. Trendline resistance over the market today crosses at $7.44 should we go there.
key support: $7.22/$7.24
resistance: $7.39/$7.40
possible range: much the same
July Wheat: The market is in a wide sideways pattern and has established a trading range with a low that has moved up to $7.25/$7.30 given the recent spike to new highs. Major support is at $7.32/$7.33 should we go there on further weakness. If short, would cover something in at that level and try the long side of the market.
key support: $7.32/$7.35
resistance: $7.50/$7.55
possible range: much the same or higher
July Beans: The market is technically strong trading higher from overnight weakness with a strong close. Top trendline resistance is located at what would be new contract highs at $16.00, but the bounce back from morning lows increases the chance that we test it, and perhaps place new contract highs once again. The strong ADX at 41 shows that buyers are there on breaks. Think we test $16.00 and eventually above that.
first support: $15.80/$15.85
resistance: $15.95/$16.05
possible range: much the same or lower
July Soyoil: The contract high is 6628c, and prices tested and nearly took out major trendline support with the trade down to 6325c. Once again lower support held with a nice comeback trade. Would look for any sell-off towards 64c to be a buying opportunity for a market that could test its contract highs once more for a 63c-possible 67c/68c trading range.
first support: 6420c
resistance: 6480c/65c
possible range; much the same
July Meal: The market extended its trading range to the upside and could continue to lean higher moving towards the $445.00 to $450.00 level of key resistance. The price action is stronger now, and lower support now moves up to $420.00 from lows that were $410.00. Look for a pullback under $440.00 to now see support.
first support: $439.00
resistance: $445.00
possible range: much the same
JULY MEAL
The big picture trading range has now moved higher with major support located at $418.00 to $420.00 where crossing lines of support as well as moving averages all cross. The direction is now sideways /higher from lower, with channel resistance overhead for the day at $445.00 and support moving up to $435.00. If needing to price and the market pushes above the top blue trendline resistance of $445.00, best to move up pricing ideas as the chart could rally further to $450.00 /$460.00. For now, prices may struggle against the uptrend channel high. Temporary trading range is from $420.00-$445.00 or higher.
TAGS – Feed Grains, Soy & Oilseeds, Wheat, North America
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