SPREADS

August crush trades at 83.02c/bu while oilshare trades to 32.55%.  Rolls begin today.  July/Dec corn trades from 13 1/4c to 13 3/4c, while July/Sep trades from 4c to 4 1/2c.  July/Nov beans trade from 8 1/2c out to 9 1/2c.  July/Dec wheat trades from 12 1/2c to 13 1/4c.  July wheat/corn trades from 1.98 1/4c to 1.93 3/4c.  

PALM OIL - August up 25 ringgits on Malaysia's move to suspend export levies until December, a jump in shipments and hope of higher demand following the re-opening of restaurants and schools.  

NEWS

The stock market rose is now up over 580 pts.   Non-farm payrolls rose by 2.5 mln, with the reading a surprise and higher than expected.  US unemployment rate is 13.3%, vs. the expected 19.5%.  Gasoline demand may go into a "v" shaped recovery as drivers go back to work.  The US dollar is coming back as better than expected data comes in. 

CALLS

Calls are as follows:

beans: 3-5 higher

meal:  .80-1.00 higher

soyoil:  20-25 higher

corn:  1/2-1 higher

wheat:  1/2 higher

canola:  1.80 higher

BUSINESS 

USDA reports 330,000 tmt of beans sold to unknown.

USDA reports 258,000 tmt of beans sold to unknown.

TECHNICALS

July beans:  prices broke out to the upside this morning with support moving up to $8.52 and resistance located at the upper end at the 100 day moving average of $8.78.  On a good close would expect new highs and think we proceed to test resistance from $8.75-$8.78.  Would look to move into a new trading range slightly higher than the last from $8.50-$8.80.

first support: $8.62/$8.65

resistance:  $8.72/$8.75

possible range: much the same

July meal:  the market staged a rally leaving behind a congestion zone from $281.00-$285.00.  Would look for prices to trade back towards $288.00 at some point, but it now offers up support for a market that could still rally towards $299.00.  

first support: $288.00

resistance:  $292.00/$293.00

possible range: much the same or lower

July soyoil:  prices continue to follow a pattern of hitting new highs followed by 50-70 pt drops which become buy-able.  For the day, support moves up to 2780c and would look to re-test the high of 2820c.  Target high is 2865c, and then 2890c.  Feels like this market want to eventually hone in on that gap level and close it for a slightly higher 27c-29c trading range.

first support: 2775c

resistance:  2820c

possible range: much the same or higher

July corn:  prices continue to congest and unlike the bean market is still confined within a slight up-trend channel.  Top of channel today crosses from $3.32-$3.33 should we go there.  WOuld expect a pullback towards $3.25 to hold if we go there.  

first support:  $3.26

resistance: $3.31/$3.32

possible range: much the same

July wheat:  prices could have confirmed an inverted head and shoulders bottom formation.  If this were to play out, then prices should not go back under the $5.15 level.  Channel support is located at $5.20, and would look to test it.  Key resistance remains $5.30,  which held the recent rally in check.  

first support: $5.18/$5.20

resistance:  $$5.28/$5.29

possible range: much the same

JULY CORN:  Prices continue to trade in an uptrend channel, with crossing lines of resistance at top of channel today at $3.45.   If prices can trade over channel resistance would spark a better rally, and would then look for prices to move into the $3.50-$3.55 level, which would be an upside target.  Prices did cross to the upside of the 50 day moving average of $3.40, which now becomes support.  Would look for a test of $3.45 at the minimum, as the turn into new highs is very constructive. 

 

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