SPREADS

Sep. crush trades to 84.97c/bu while oilshare falls trades higher to 34.86%.  Spreads are slightly weaker with the Aug/Nov inverse trading from 5c to 3c.  Sep/Nov beans trades from 2-3 3/4c carry.  Sep/Dec meal trades wider from $6.10 out to $6.70.  Sep/Dec corn trades from 10 1/2c to 11c carry.  Sep/Dec wheat spread widens out to 7 3/4c from 7 1/4c.  The Sep wheat/corn spread trades from 2.13 1/2c down to 2.09c.  

PALM OIL

October up 51 ringgits, tracking strong gains in Dalian palm.   Palm oil gains as exports for palm are expected to have risen for the month of July.  AmSpec Malaysia forecast July 2020 palm exports at 1.739  mln mt, vs. June at 1.629 mln mt.  

NEWS

Stocks are 150 pts higher with crude oil prices trading either side of $40/barrel.  Gold prices hit a high of $1984.30/oz, with the US dollar firming to 83.89.  

CALLS

Calls are as follows:

beans: 4-6 higher

meal:  90-1.00 lower

soyoil: 45-55 higher

corn:  1/2 higher

wheat:  6-8 lower

canola:  1.40-1.60 higher

BUSINESS

USDA announces 260,000 mt of beans sold to unknown

TECHNICALS

November Beans:  Major trend is higher and pullbacks have been supported, along with larger breaks.  The last pullback to $8.80 was met by a successful reversal.  Would look for prices to challenge $9.03/$9.06, but there is significant resistance here which may stop an advance.  Would own pullbacks as beans appear ready to stay on a higher path.

first support: $8.95

resistance:  $8.98-$9.03

possible range: much the same 

December Meal:  Major direction is sideways, but trendline support is located at $294.00.  Prices may go there, but if so, think it holds for a move back over $300.00.  Could continue to straddle/strangle $290.00-$308.00.

trendline support: $294.00

resistance:  $297.50

possible range: much the same

December Soyoil: The major trend is higher, and pullbacks are holding.  The market closed Friday over 3050c, which was the 200-day moving, to head to 3080c.  Would look for prices to target 3180c short term, and then 3212c long term.  Would own pullbacks for the day that take prices back towards 31c.  

first support: 3090c-3105c

resistance:  3140c-3150c

possible range: much the same

December Corn:  The market is beginning to form what appears to be a base of support from $3.25-$3.26.   If short, may want to think about covering something in and keeping the rest in case a rally against $3.30 fails again.  Prices may still test contract lows at $3.22.  If wheat prices fall further today, could weigh on corn as it tries to rally.

first support: $3.24 1/2-$3.25

resistance:  $3.29 1/2-$3.30

possible range: much the same

Sep. Wheat:  Current trading range is from $5.20-$5.50.   On a weaker start it appears that $5.20-$5.23 will be tested once again.  The chart will look extremely toppy should prices now break $5.17.  If long and prices turn below $5.17, there is not much to stop a slide to $5.05/$5.08.  Would have a protective sell-stop close by given the chart construct.  

first support: $5.22

resistance:  $5.30/$5.32

possible range: much the same or lower

NOVEMBER BEANS

Overall trading range is from $8.80-$9.12, and prices have been on the rise month over month.  The chart is more constructive suggesting the potential remains strong for an upside break-out.  However, the trend is weak with an ADX reading at 12, which is why prices tend to fail when follow-through does not occur.  If prices move through the 200-day moving average of $9.07, which would be over minor triangle resistance of $9.05, the upper target moves back to $9.23.  Would continue to own pullbacks in this market, as lines of support are forming underneath which are now stronger than overhead resistance.  A settlement over $9.00 would trigger more fund buying should we go there.  

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