SPREADS
Dec crush remains strong at 1.27c/bu while oilshare trades at 30.61%. Bullspreads remain strong with Dec/Dec corn inverting to 12 1/2c from 8 1/4c while Dec/March narrows into 3 1/2c from 4 1/2c. Jan/March beans inverts to 11 3/4c from 10c, and against recent highs of 29c post reports. Dec/March meal inverse trades at $14.60 from $13.50. Dec wheat/corn trdes from 2.23 1/4c to 2.21 1/4c.
PALM OIL
Dec. up 35 ringgits, with cash up $10.00.
NEWS
Stocks were lower but traded both sides of even into the early session. Crude oil trades up to $41.59/barrel with the US dollar trending down to 92.64.
CALLS
Calls today are as follows:
beans: 8-10 higher
meal: 6.50-7.00 higher
soyoil: 5-10 higher
corn: 2 1/2-3 1/2 higher
wheat: 1 1/2-2 higher
canola: 2.20-2.50 higher
No sales reported.
What to look for today? Prices remained well bid into the close for all the markets except soyoil. Would look for follow-through to the upside.
TECHNICALS
December Corn: Prices hit a new trading range high at $4.12 3/4, with price action remaining well bid on pullbacks. The market congested from $4.00-$4.04, which now becomes a base of support. On a market break, would look to first support to now move up to $4.05, and for resistance to move back to $4.12/$4.15. There is not a reversal signal yet to confirm a top is in place, and the target here is now $4.19/$4.23 on a further rally.
first support: $4.08
resistance: $4.11-$4.15
possible range: much the same
December Wheat: The market hit a new trading range high at $6.38 1/4 which leaves the door open to further highs again. Target high is $6.50, and the market held a break down to $6.20. If one market were to trade into the red, suspect it could be this one as chart price congestion takes place. However, would cover a short or try the long side should the market pullback to $6.25, which it may. Trendline resistance for the day is located at $6.41/$6.42 and may hold a rally.
first support: $6.25/$6.28
resistance: $6.35/$6.40
possible range: much the same
January Beans: The trading range is now from $10.35 up to $10.77 ctr highs. The major direction is higher, and the morning price action takes the market to the upside of a triangle formation, which is friendly behavior. The turn higher from sideways puts the prev. ctr high of $10.77 in sight, with major trendline resistance crossing well overhead at $10.85/$10.88 should we go there. Good first support now moves up to $10.63/$10.65 on a break.
first support: $10.63 to $10.65
resistance: $10.75/$10.78
possible range; much the same or higher
December Meal: Prices place a new ctr high at $379.00 with a good close. The market broke hard to $360.00 yesterday with a return trade to the upside of $372.00. The $372.00 now becomes the first support in a market that has yet to place a market top. The ADX trend is strong, and pullbacks should be used to price or cover something.
first support: $374.00 / $375.00
resistance: $379.00/$380.00
possible range; much the same
December Soyoil: Prices are sideways from 32c-3450c. Prices are lagging the rallies in other areas due to consistent buy meal/sell soyoil trade. Technically the market posted double lows at 3228c, and would expect that to hold for a rally back over 34c. For the day would look for any break towards 33c to be a buying opportunity. Trendline resistance does sit at 34c.
first support: 3330c
resistance: 3390c/34c
possible range: much the same
JANUARY BEANS
The chart remains very constructive with prices continuing to climb back towards recent contact highs of $10.77. The market was in a congestive phase from $10.45-$10.65, but seems to now break out of that to the upside. This is very friendly behavior, implying that prices are likely to place another new ctr high. Would look for a first target at $10.80, with major resistance not crossing until prices reached $10.85/$10.88. The apex of the triangle is $10.50, and suggests an eventual $10.50-$10.80/$10.90 range is possible.
TAGS – Feed Grains, Soy & Oilseeds, Wheat, North America
Wheat remains the star of the ag commodity space this week with the rally continuing on challenging weather prospects for the U.S. HRW region, Europe, and the Black Sea. Until a few weeks ago, there were few doubts about the 2024 crop being able to supply the expected demand, but now reduced yi...
Most Apparent Solution The EU’s organic sector wants the bloc’s officials to take more action to ensure they achieve the target of 25 percent of agricultural output being organic by 2030. Specifically, they want a campaign to increase consumer demand for organic food so that organic...
Yesterday, the Animal and Plant Health Inspection Service (APHIS) issued a federal order requiring testing and reporting of highly pathogenic avian influenza (HPAI) for the interstate movement of lactating dairy cattle. Specific guidance will be issued at some point today, and the order will go...
