Grains Report - Monday, Feb. 23

WHEAT
General Comments: Wheat closed higher last week on buying tied to higher prices paid in overseas markets and on drier weather in the Great Plains. The weather is now averaging above normal temperatures and some rain is forecast for parts of the Great Plains and Midwest, but variable temperatures are coming now or in the next couple of days along with some beneficial precipitation in a few areas. Temperatures were cold enough a couple of weeks ago to promote Winterkill. Many parts of the Great Plains are too dry for best yield potential, but USDA has recently rated the crops in good condition. Russia has been cold as well, bust no losses have been reported although some damage is possible. The US Supreme Court has made the Trump tariffs illegal. This should be good news for US Ag markets as the decision should help reduce costs of imported inputs and cash sales for exports.
Chart Analysis: Trends in Chicago are mixed to up. Support is at 553, 549, and 535 March, with resistance at 577, 583, and 589 March. Trends in Kansas City are mixed to up. Support is at 555, 542, and 535 March, with resistance at 583, 589, and 595 March. Trends in Minneapolis are not available.

RICE
General Comments: Rice was lower last week and trends are down. The weekly export sales report was considered positive. Futures had been recovering for the last month after a very long and sizable down move, but the up move came to an apparent end last week. Traders anticipate less production this year in the US and around the world due to low prices. Asian Rice prices are under pressure now due to a weaker Indian Rupee that forced costs for Indian Rice lower. Trends are mixed as demand remains moderate for US Rice.
Chart Analysis: Trends are mixed to down. Support is at 1002, 996, and 984 March and resistance is at 1051, 1056, and 11 March.

CORN AND OATS
General Comments: Corn was slightly lower last week in consolidation trading. Trends are still mixed. There are still excessive supplies as seen in the recent USDA reports after trending higher against strong demand. Temperatures in the Midwest should average near to above normal this week. Conditions are called good in Argentina and big production is expected there. The US Supreme Court has made the Trump tariffs illegal. This should be good news for US Ag markets as the decision should help reduce costs of imported inputs and cash sales for exports. USDA showed that planted Corn area could be just under 95 million acres in the US. Oats were higher and trends are up on the daily and weekly charts.
Overnight News: Colombia bought 125,000 tons of US Corn.
Chart Analysis: Trends in Corn are mixed. Support is at 417, 414, and 411 March, and resistance is at 445, 453, and 465 March. Trends in Oats are up. Support is at 306, 299, and 294 March, and resistance is at 338, 344, and 350 March.

SOYBEANS
General Comments: Soybeans and Soybean Oil were higher yesterday on what appeared to be speculative buying even though the big South American crops were still in the news. South American sources said that the Brazil crops are now more than 21% harvested. There are still ideas of additional Chinese demand soon that were fueled by statements by President Trump that he and Xi had talked and that the president had pushed him for more Soybeans purchases as both sides work to reduce trade tensions between the countries. It will be up to the Chinese government to buy as US Soybeans are too high priced for commercial demand from commercial users in China or almost anywhere else. The tariff wars between the two countries add another layer of cost onto the Soybeans. Soybean Oil was supported by strong demand ideas led by demand for biofuels. It still seems that the market is concerned about big supplies coming soon from South America with the Soybeans harvest there now underway. Temperatures will average near to above normal in the Midwest this week. The US Supreme Court has made the Trump tariffs illegal. This should be good news for US Ag markets as the decision should help reduce costs of imported inputs and cash sales for exports.
Analysis: Trends in Soybeans are mixed to up. Support is at 1122, 1116, and 1106 March, and resistance is at 1150, 1159, and 1172 March. Trends in Soybean Meal are mixed to up. Support is at 302.00, 297.00, and 289.00 March, and resistance is at 316.00, 321.00, and 325.00 March. Trends in Soybean Oil are mixed to up. Support is at 5610, 5500, and 5410 March, with resistance at 5980, 6040, and 6100 March.

PALM OIL AND CANOLA
General Comments: Palm Oil futures were lower last week in trading after the Lunar New Year as the export data from private sources showed weaker demand. Futures were lower today. Ideas of increasing seasonal demand and ideas that Palm Oil is relatively cheap in the world market are still around. Demand ideas are in a state of flux right now with some looking for weaker demand and others looking for improved demand. Production is expected to drop in the short term. Canola was higher yesterday on mostly speculative buying amid strong demand ideas. The selling seen came ideas of big crops in South America. Canada and China reached agreement on a new trade deal which is expected to result in part in new sales of Canola to China
Chart Analysis: Trends in Canola are mixed to up. Support is at 657.00, 647.00, and 641.00 March, with resistance at 674.00, 680.00, and 686.00 March. Trends in Palm Oil are up. Support is at 3990, 3930, and 3870 May, with resistance at 4100, 4160, and 4200 May.