SPREADS
Dec crush trades to 1.36c/bu while oilshare trades to new highs at 49.47%. Bean spreads are weaker as November contracts continue to roll forward. Nov/Jan bean carry trades from 11c to 11 1/2c, while Nov 21/22 trades from 1 3/4c to 6 3/4c carry. Nov/March bean spread trades out to 21 1/4c. Dec/March corn trades from 8 3/4c to 9c, while the Dec 21/22 inverse trades from 9 1/2c to 6 1/4c. Dec /March wheat trades from 13 1/4c to 13 3/4c carry. Dec wheat/corn trades from 2.06 1/4c to 2.05c.
PALM OIL
Dec down 27 ringgits/mt. Cash offers down $5/mt.
NEWS
Stocks are up 20 pts. while crude trades to $79.66/barrel. The US dollar trades down to 94.12.
CALLS
Calls today are as follows:
beans: 8-10 higher
meal: .80-1.00 higher
soyoil: 50-60 pts higher
corn: 2 1/2-3 1/2 higher
wheat: 2 1/2-3 1/2 higher
canola: 7.00-8.00 higher
DELIVERIES
Soyoil: 66
BUSINESS
No announcements
TECHNICALS
November Beans: Prices are now stabilizing after reaching a low of $12.31. Lower support moves up to $12.40 and may hold for a further rally today. Would look for pullbacks to hold as prices attempt to now establish a sideways range off the low. Prices can trend towards the 200-day moving average of $12.80, but if so it is a selling opportunity.
first support: $12.48/$12.50
resistance: $12.58/$12.65
possible range; much the same
December Meal: Chart is into new lows under $320.00 at $318.00. Though it is oversold, the chance for further new lows after the open is still there. Target low is now $315.00, and top of the range moves down to $325.00. Rallies continue to be sold, as all of them have failed. There is not yet a good reversal tech signal here, so look for more pressure.
first support: $318.00
resistance: 322.00
possible range: much the same
December Soyoil: Prices hit new highs for the move up at 62.83c. The lower end of the trading range moves up to 58c, and a pullback towards 60c is a short-covering or buying opportunity. Would look for any pullback to 61c to also hold, as the target high moves back to 63c/64c. The chart is very strong, and the successful market walk back to test 60c was successful, setting off buying interest.
first support: 62c/6220c
resistance: 6280c/6320c
possible range: much the same
December Wheat: Prices have been in congestion mode since trading up to $7.63 1/2. A new low was traded today at $7.38, but it could become the low in a market that still wants to move higher. Congesting after a sharp rally higher is typical of bull markets. Target high over $7.60 is $7.78/$7.80.
first support: $7.35/$7.37
resistance: $7.48/$7.50
possible range: much the same
December Corn: Trading range is clearly established from $5.27 - $5.48. The start over $5.30 turns the market slightly higher from a recent test of lows. If the rest of the markets remain firm would look for Dec corn to head back towards $5.40/$5.45 again.
first support: $5.35
resistance: $5.40/$5.41
possible range: much the same
DECEMBER CORN
Establishing a sideways trade now with a weak trend ADX of 15. The chart is now walking back to verify our trading range low, and once again $5.27 was a spot that held. Look for a likely $5.25-$5.48 trading range to continue, and for prices to move back and forth within the red line boundaries, as they have been since the middle of September. Would note that the low volume trade continues as prices chop back and forth in little follow-through to either side.
TAGS – Feed Grains, North America
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