SPREADS

Sep crush trades firmer at 97c/bu while oilshare firms to 31.25%.  Buy soyoil/sell meal trade continues.   Dec/Dec corn inverse trades firmer up to 26 3/4c from 21c, while Dec/March trades out to 7 1/2c from 6 3/4c.  August/Nov beans trades from 17 3/4c out to 18 1/4.  Sep/Dec wheat trades into 11 1/4c from 11 3/4c. 

PALM OIL - up 3 ringgits with more consumer activity noted.  

NEWS

The Dow is mixed today with prices turning lower from higher, down 7 pts.  Crude oil trades up to $58.36/barrel while the US dollar is weaker at 97.30.

Calls today are as follow:

beans: 4-6 higher

meal:  1.40-1.80 higher

soyoil:  18-22 higher

corn:     4 1/2-5 higher

wheat:  3-5 higher

canola:  1.40-1.60 higher

TECHNICALS

Nov Beans:  Big picture trading range is from $8.90-$9.40/$9.50, and the market is using $9.25 as a pivot point.  We have been both sides of this level, with double lows today at $9.02 1/2.  The chart presents a sideways/higher slant, so would expect the buying to continue from the start of the day.  A pullback at the open towards $9.05/$9.08 may hold for an extension rally towards $9.15/$9.18, and eventually target $9.25.  Feels like short-covering at trading range lows was the catalyst for the higher close.  

first support:  $9.05/$9.08

resistance:    $9.15/$9.18

possible range: much the same

Dec Meal:  Overall trading range is from $310.00 up to $336.00, contract highs.  The market has put in a hard stop at $325.00, which is key resistance.  Would expect that meal could trade back over $318.00 at some point, as it congests within yesterday's trading range.  Current low trade for the move down is $313.00, which now turns into key support.

first support: $314.00

resistance:  $317.50/$318.00

possible range: much the same or lower

Dec Soyoil:  Building a case for the market to continue to move higher, back over 29c once again having defined 2830c-2840c as good support.  The trend has been sideways higher, and a good close suggests that pullbacks may be owned by shorts perhaps wanting to lighten up.  If day trading could own the market against a 2840c low, there is the potential to trade higher.

first support: 2855c

resistance:  2885c/2890c

possible range; much the same

Sep Wheat:  Trading range overview is $5.00-$5.50.  Key support has been tested for the last week, and in fact the $5.00 level has stayed put as far back as May as a level of support that sponsored rallies.  Expect to see an extension rally, even though the US is fighting to compete for Egyptian business.  Funds are long wheat, and for the day the defense of the $5.00 level of support becomes stronger as we move up and away from it.

first support: $5.08

resistance:  $5.15/$5.18

possible range: much the same or lower

Dec Corn: Moving sideways in a range from $4.20-$4.65, with $4.73 contract highs in place.  Each break holds at a slightly higher level, and brings in new buying interest.  The day of the WASDE report broke the market to $4.30, which held.  Yesterday's break took us to $4.35 and held.  Markets that move sideways and bounce show some inherent strength and would therefore look to continue to move upward towards the $4.48/$4.52 swing level in this wider $4.20-$4.65 trading range. 

first support: $4.41

resistance:  $4.48/$4.51

possible range: much the same

SEPTEMBER WHEAT  

Price action has held on a break to the $5.00 level since May.  There have been very few times since we traded towards $5.50 where we have traded under this level.  As such, today's price action suggests we can recover further with another successful hold at this key level of trade.  Would look to now move back towards the middle of the trading range again, which would be from $5.20/$5.25.  Could straddle/strangle this level.  The market would have to settle underneath $4.95 which would be the time to become a seller for a larger break.  

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