SPREADS

Spread trade consumed most of the volume in the last session. March corn was down 36,104 contracts with May up 23,638 contracts.  March open interest declines to 373,184 contracts with May at 489,438 contracts. March bean open interest declines by 21,013 contracts with May open interest largest now at 275,417 vs. March at 211,131 contracts. May wheat has the largest open interest at 180,371 vs. 104,322 in March. 

May crush trades to 88c/bu while oilshare trades down to 34.18%. July/Dec corn trades from 2 3/4c to 3 3/4c. March/May wheat trades to a 3 1/4c inverse from 1 1/2c. July/Nov bean trades from 6c to 7 3/4c. 

PALM OIL

Cash offers down $2.50/MT at $682.50/MT and $685.00, respectively. 

NEWS

The Dow is down 140 pts with crude values off to $50.88/barrel. The US dollar trades higher at 99.40. 

Calls today are as follows:

• beans: mixed/lower
• meal: .30-.50 lower
• soyoil: mixed/lower
• corn: 1 1/2-2 higher
• wheat: 9-10 higher
• canola: 1.10-1.20 higher

TECHNICALS

March wheat: prices could be in the early process of carving out a mini $5.45 - $5.65 trading range, with the possibility of a higher trade as prices re-enter the previous $5.45-$5.92 trading range. Trading back over key resistance at $5.51 led to the larger price rally.  Would look for a pullback towards $5.45 to now hold given the inability of the market to break below $5.38, with resistance located from $5.61/$5.63.

• first support: $5.50/$5.51
• resistance: $5.61/$5.63
• possible range: much the same or lower

March corn: the market is moving sideways but always under key moving averages located from $3.83 up to $3.88. Would still own breaks down towards $3.75, as prices typically find their way back over the pivot level of $3.80, which continues to serve as a magnet on the upside and down. 

• first support: $3.77
• resistance: $3.83
• possible range: much the same

March beans: prices have corrected off the lows of $8.68 3/4 to trade towards the $9.00 level. The price pattern has been to break lower when three resistance lines form, and on a weaker start the market may find willing sellers against $8.98-$9.00 with buy-stops close by.  If wanting to be short, can do so unless the market takes out trendline resistance which for the day crosses at $9.00. 

• first support: $8.88/$8.89
• resistance: $8.98/$9.00
• possible range: much the same

March soyoil: moving sideways from 3045c (200-day moving average) up to 31c. The market begins today right on key support once more, and any violation now would send the market down to 30c. If short, would still cover a partial position from 3045c to 3055c, and keep some in case a larger break is created by a push through the 200-day moving average. Big picture trading range remains from 30c - 32c.

• key support: 3045c
• resistance: 3090c
• possible range: much the same or lower

March meal: prices remain sideways from $286.40 up to $295.00. The market probably sets back to test double lows at $289.00 but could find support at that level. If needing to price something, would still consider doing so from $286.40 to $290.00. 

• first support: $289.00
• resistance: $291.00
• possible range: much the same 

MARCH BEANS

Big-picture trading range is from $8.70 to $9.20, and prices have been attempting to rally over $9.00. Key resistance is from $8.98-9.00, and the market has to rally over $9.00 to gain further traction to the upside. Leaving the PM session high at $8.98 1/2 intact forms a third line of resistance which would result in a test of recent lows again. Double lows are at $8.90, which likely will be tested as well to see if they can hold. Would still price or own breaks on any trade towards $8.80/$8.85, as think at some point the market will top $9.00.

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