SPREADS

March crush trades to 99c/bu while oilshare trades below 34% to 33.86%.   Dec/March corn moves into 9 1/2c from 10c, while Dec/March wheat trades from 3 1/4c to 3 3/4c.  Dec/March meal moves back out to $5.00 from $4.70.  Jan/March beans moves to 14 1/4c from 14c.  March wheat/corn trades from 1.42 3/4c up to 1.46 1/4c.  

PALM OIL

Jan down 17 ringgits.   SGS forecast Malaysian palm oil product exports for the Nov 1-25 period at 1.166 mmt, down from Oct. 1-25 estimate of 1.202 mmt

NEWS

The Dow is up 60 pts today with crude oil trading to $58.08/barrel, and the US dollar at 98.36.  

CALLS

Calls today are as follows:

beans:  2 1/2-2 higher

meal:  50-80 higher

soyoil:  15-20 lower

corn:  1 higher

wheat:  7 higher

canola;  .30-.50 lower

What to look for today? We begin in the green except for soyoil, but would look for both sides of even to be tested today.  March corn has to hold $3.78 and Jan beans have to trade over $9.00 at the open to suggest we can leg higher.  Might be a tall order.

TECHNICALS

Jan Beans:  The major move has been lower, and prices need to open over $9.00 to gain traction to the upside.  Trendline support is close by on another break at $8.94, and would look to possibly cover a short if we go there.    Lowest target ideas under $8.90 do not come into play until we reach $8.80.

trendline support: $8.94

resistance:  $9.02/$9.03

possible range: $8.93-$9.03 or lower

Jan Meal:  Main direction is lower, and double lows are now located at $300.50/$300.60.  Would look for a probable continuation of a $300.00-$310.00 trading range.  

first support: $300.00

resistance:  $303.50

possible range: much the same

Jan Soyoil:  The overall high for this market is 3212c, and prices begin the day by working into the lower end of recent trade back towards 3050c.  Any close under 3050c forms a head and shoulders top that implies a larger correction is coming.  Fundamentals have been strong here, so if the market were to break and turn into a failed head and shoulders top, the larger correction would prove to be a great buying opportunity.  

first support: 3075c/3080c

resistance:  3115c to 3120c

possible range: much the same

March Corn: Prices are sideways from lower, with lows now forming from $3.76-$3.78 that could lead to a $3.76-$3.86 sideways trading range.   The market has from time to time turned sideways, only to break the pattern and fall to new lows once again.  The difference is that we were posting tops and failing at resistance.   This time the chart is congesting from $3.76-$3.78, which may bring more stability and invite shorts to cover something in.

first support: $3.77

resistance:  $3.82/$3.83

possible range: much the same 

March Wheat: Prices remain well bid and opens into key resistance, which is located from $5.27-$5.30.  Would look for pullbacks to see more buying interest given the strength on the chart.  Lower support is solid at $5.11, and overhead resistance still remains undefined.

first support: $5.22

resistance:  $5.27/$5.30

possible range: much the same or lower

MARCH CORN

Major trend has been lower, with an overall trading range from $3.76-$3.90.  Good resistance is from $3.86/$3.83, and we could firm into this level if we see a short-covering bounce this week.  However, traders will still be looking for selling opportunities.  The turn slightly higher from lower and the support lows from $3.76 3/4-$3.77 should cushion a break.  Would look to work into a $3.76-$3.86 temporary trading range into the holiday.  

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