SPREADS
March crush trades to 97.71c/bu while oilshare trades to 32.40%. No deliveries find Dec/March corn narrowing into 6c from 6 1/2c, while the Dec/Dec inverse trades at 12c. Jan/March beans trade from 1/2c to 1 1/2c carry. Dec/March meal trades from $4.60 inverse to $4.40. March wheat/corn trades from 1.59 1/4c to 1.60c.
PALM OIL
Feb up 44 ringgits at 3,349 ringgit/mt.
NEWS
The Dow is up over 300 pts as more vaccines are scheduled for roll-out. The US dollar trades down to 91.60 with crude at $44.81/barrel.
CALLS
Calls are as follows:
beans: 1-2 higher
meal: .90-1.00 higher
soyoil: 10-15 higher
corn: 1 higher
wheat: 1 1/2-2 higher
BUSINESS
No business announcements
TECHNICALS
Jan Beans: Overall trading range is higher, but the market fell out of its uptrend channel and is looking for stabilization this morning. The market will find support at $11.65, and then $11.60. The reversal out of higher to lower trade suggests we could test $11.60, but if short would cover.
first support: $11.65
resistance: $11.75/$11.77
possible range: much the same or lower
Jan Meal: Overall trading range is from $385.00-$400.00. Multiple tops are now located at $400.00, while the 20-day moving average is at $389.00, with a nice bounce off this low. Channel resistance crosses today at $394.00, and if prices trade back under $389.00 would look for $386.00 to find a test. Under the circumstances, meal is holding up well.
first support: $388.00-$389.00
resistance: $393.00
possible range: much the same
Jan Soyoil: Overall trading range is from 37c-39c. Would look for prices to test lower support at 37c should we break double lows at 3740c-3750c. If short, would scale down cover from 37c-3750c.
first support: 3740c-3745c
resistance: 3780c
possible range: much the same
March Corn: Overall trading range is from $4.20-$4.39 1/2, new ctr highs. The market is attempting to stay above $4.20, and on a pullback think it's a good buying opportunity should we go there. Would look for this trading range to likely stay intact with a swing point of $4.30.
first support: $4.23
resistance: $4.29/$4.30
possible range: much the same or higher
March Wheat: Overall trading range is from $5.85-$6.20, but double lows may be tested for further downside. Target low is $5.80, and if short would probably cover something in at this point. New lows have to prove they can hold from $5.84-$5.85.
first support: $5.83/$5.85
resistance: $5.95
possible range: much the same
JANUARY BEANS
Path of least resistance is higher but the tops at $12.00 now become stiff resistance. The market is attempting to find a trading range low in order to begin a sideways range from the highs. The overall suggested low could be $11.66 but think it will have to prove itself. Better support is at $11.60, and if we got there would cover a short, try the long side, or price something as the ADX trend is still strong at 52. However, if traders begin to use small rallies to liquidate the overall trend could be in trouble. Any close under $11.60 will find the market quickly entering a second sell-off phase. For now, would look for a possible $11.60-$12.00 range to play out into the Dec. WASDE and possibly into the end of the year.
TAGS – Feed Grains, Soy & Oilseeds, Wheat, North America