SPREADS
Dec crush trades to 92.15c/bu while oilshare trades to 34.24%. Dec/March corn trades to 8 1/4c from 8 3/4c, while Dec/Dec narrows to 11 1/2c from 15c. Nov/Jan beans trades back into 2 3/4c from 3 3/4c, while Jan/March inverts to 9 1/2c from 7c. Dec wheat/corn trades from 1.93 34c to 1.86 1/4c.
PALM OIL
Dec futures traded 107 ringgits higher, ending at 3,082 ringgit/mt which is an eight-month high.
NEWS
Equities are slightly lower, down 23 pts, with crude oil trading to $41.49/barrel. The US dollar trades down to 92.77.
CALLS
Calls today are as follows:
beans: 6-9 higher
meal: 2.00-2.40 higher
soyoil: 30-35 higher
corn: 1 - 1 1/2 higher
wheat: 3 1/2-4 higher
canola: 90-1.10 higher
BUSINESS
USDA reports 100,000 mt of meal sold to unknown for 20/21
USDA reports 132,000 mt of beans sold to China for 20/21
USDA reports 210,000 mt of corn sold to China for 20/21
TECHNICALS
December Corn: Posted a new trading range high for the extended up-move to $3.79 1/4. The market is overbought with an ADX reading of 71%, suggesting pullbacks are in order. However, the lower end of the market now moves up to $3.61, and the top is yet to be defined. The upper target now moves back to $3.88/$3.90. Would look for futures to target $3.81 today if prices head higher, and first support is now located at $3.71.
first support: $3.71
resistance: $3.79/$3.81
possible range: much the same
December Wheat: Prices are moving sideways, with the pullback to major support at $5.33 now being a buying opportunity in a market working its way upward. However, $5.65 to $5.68 is major resistance, and with the trend least strong here would probably elect to liquidate a partial long if we get close to it again. Upper trendline resistance is located at $5.68/$5.72.
first support: $5.54
resistance: $5.65/$5.68
possible range: much the same
November Beans: Prices remain extremely overbought with an RSI at 84%, but new ctr highs were posted once again at $10.44. Look for pullbacks to continue to hold, and the market has yet to post a good reversal signal off the high that marks the end to this rally. Overall trading range now appears to be from $10.00 with the chance of heading to $10.50 or higher.
first support: $10.32/$10.35
resistance: $10.44-$10.50
possible range: much the same
December Soyoil: The trend remains higher with new highs posted today at 3549c. Would continue to look for pullbacks to hold as prices move upward. The market moved out of pennant formation to the upside, and tested the top of the pennant with a pullback to 34c which held. Therefore, 34c now becomes a trading range low in a market yet to define its high. Trendline support on a better break moves up to 3490c, and resistance back to 3590c for the day. Look to possibly head there if the open remains supported.
first support: 3490c/3505c
resistance: 3550c
possible range: trade past 3550c takes the market into 3590c/36c. Look to probably head there in the big picture
December Meal: Overall direction is higher with gains accelerating out of an expansion of the trading range over double highs of $328.00. The two -day vertical advance higher could be met with another bull flag formation in time, but the low end of this trading range has moved up to $315.00 with the placement of a new trading range high to $339.70. Prices begin not too far off the mark, so would expect to see another challenge of $340.00 at some point during the session. Conditions are, as in the other markets, overbought with an RSI of 70%, which warns of a correction.
first support: 333.00-$335.00
resistance: $339.00-$341.00
possible range: much the same
DECEMBER CORN
The overall trading range has expanded to the upside as prices top an up-trend channel and trade over major resistance at $3.70. New highs this morning are $3.79 1/4 as good support now moves up to $3.71. The new trading range, given recent events, could be bumped up to $3.60-$3.90, but have to see a sustained good trade today with a close above $3.70. Very good support for this market improves from $3.55 to $3.60, which is where the bottom of the uptrend channel converges with two major moving averages. Stronger markets do not easily fall back to that level, and would now expect good support to move up to $3.65 on a profit-taking break, with a pullback to $3.71 also holding.
TAGS – Feed Grains, Soy & Oilseeds, Wheat, North America
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