Grains Report - Thursday, Feb. 19

WHEAT
General Comments: Wheat closed higher yesterday on buying tied to higher prices paid in overseas markets. The selling was helped by the weaker export inspections. 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 some 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.
Chart Analysis: Trends in Chicago are mixed to up. Support is at 531, 525, and 522 March, with resistance at 555, 565, and 571 March. Trends in Kansas City are mixed to up. Support is at 533, 525, and 516 March, with resistance at 550, 559, and 565 March. Trends in Minneapolis are not available.

RICE
General Comments: Rice was sharply lower again yesterday and trends are now down. The weekly export sales report was considered positive. Futures have been recovering for the last month after a very long and sizable down move, but the up move came to an apparent end yesterday. Traders anticipate less production this year in the US and around the world due to low prices. Weaker world prices are expected by the FAO in the coming year. Asian Rice prices are under pressure now due to a weaker Indian Rupee that forced costs for Indian Rice lower. USDA cut export demand for Long Grain Rice and increased ending stocks in the reports. Trends are mixed as demand remains moderate for US Rice.
Chart Analysis: Trends are mixed to down. Support is at 1030, 1002, and 996 March and resistance is at 1051, 1056, and 11 March.

CORN AND OATS
General Comments: Corn was slightly higher yesterday 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 above normal this week but will return to near normal temperatures by this weekend. Conditions are called good in Argentina and big production is expected there. Traders expect USDA to show that planted Corn area could be just under 95 million acres in the US. Oats were higher and trends are up on the daily charts.
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 325, 329, and 3323 March.

SOYBEANS
General Comments: Soybeans closed mixed and Soybean Oil was 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. 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 above normal in the Midwest this week but near normal this weekend.
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 311.00, 316.00, and 321.00 March. Trends in Soybean Oil are mixed to up. Support is at 5610, 5500, and 5410 March, with resistance at 5920, 5980, and 6040 March.

PALM OIL AND CANOLA
General Comments: Palm Oil futures was closed today for the Lunar New Year. Ideas of increasing seasonal demand and on 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.