SPREADS

December crush pops up to 91c/bu while oilshare trades to 45.10%.  Spreads firm with Dec/March corn narrowing into 8 1/2c from 9c carry.  Dec wheat/corn trades from 1.74 1/c to 1.81 1/4c.   Nov 21/Nov 22 inverse trades from 27c back to 31 3/4c.  Nov/Jan bean spread trades into 8 1/4c carry from 8 3/4c.  Dec/March meal trades from $4.50 to $4.80 carry.

PALM OIL

November up 20 ringgits/mt to close at 4,338 ringgit.

Correction to this morning:

For wheat, Sep. Stats Canada is out today as follows:

canola: 12.782 mmt vs. 13.6 mmt production estimate

all wheat: 21.715 mmt vs. 21.9 mmt estimate

NEWS

Stocks are down 50 pts as crude oil prices rise to $71.14 from the threat of the storm Nicholas making its way to Texas.  The US dollar trades to 92.48.  

CALLS

Calls are as follows:

beans:  7-9 1.2 higher 

meal:  1.70-1.80 higher

soyoil:  60-80 higher

corn:  4-5 higher

wheat:  11-13 higher

canola:  11.00-12.00 higher

TECHNICALS

November Beans:  Overall trading range has $12.70 reinstated as resistance, and prices could target $13.05 which is the recent top.  The reversal off the low now appears to be more solidified with today's rally.  Charts are building upside momentum.  On a solid close higher would look for prices to trend up towards $13.00/$13.05, but needs to find a close over $13.05 to target $13.35.   Pullbacks may see support given the day's rally and solid close towards the upper end of the session, which usually sees follow-through.

first support:  $12.85/$12.88

resistance:  $12.98-$13.05

possible range: much the same

December meal: Prices now presenting a trading range from $335.00 to possible highs of $365.00, with interim resistance at $355.00.  Think we are aiming to at least see a trade towards $350.00, but rallies have fizzled.  If long, may want to book a partial profit given this market's history on further strength.

first support: $345.00

resistance:  $348.00-$349.00

possible range: much the same

December Soyoil:   Trading range is now a confirmed 55c to 60/62c.  Strong performance overnight suggests that pullbacks are going to see support.  Would look for prices to build on strength, and for a rally towards 5750c minimally.  If needing to price, this is still a good place to do so as funds are long and will defend.

first support: 56.50c

resistance:  57.50c

possible range: much the same

December Corn:  Gains today suggest we see a trading range now from $5.00-$5.30/$5.35.  Still hard to trust this corn rally, though pullbacks today may invite short-covering or pricing interest.  Support for the day moves up to $5.10, and if $5.15 holds it would be more impressive, as it was a swing point for the way down.

first support: $5.12/$5.15

resistance:  $5.19/$5.20

possible range: much the same or higher

December Wheat:  Overall trading range is from $6.80-$7.20.  Prices will open close to $7.00, and would look for the likely chance we move over this level on upside follow-through.  

first support: $6.88/$6.90

resistance:  $7.02/$7.05

possible range: much the same or higher

DECEMBER WHEAT

Prices turned higher from lower, suggesting that we are going to enter a congestion phase trading range from $6.80-$7.20.  Prices are approaching the 100-day moving average at $7.02, which was a swing point on the way down, and now becomes tough resistance.  However, on a good close we likely target $7.02 and see if we can drive beyond.  ADX trend is weak at 17, which does suggest that while we head towards $7.02, it could hold on a first recovery trade.  Could also straddle/strangle $6.80-$7.20, as this appears to be a comfort zone for a bit.

TAGS – Feed Grains, North America