Grains Report - Tue., March 24

WHEAT
General Comments: Wheat closed lower in both markets yesterday in response to what President Trump said about the war in Iran. Trump said that he was talking to Uran and was pausing some of the of the bombing. Middle eastern countries are big buyers of world Wheat and many have been bombed by Iran now. Conditions are too dry in much of the US Great Plains and too wet in the US Midwest and in western Europe for best production and quality potential. Recent storm systems in the Great Plains could bring relief to crops produced there. The weather is now featuring precipitation is forecast for parts of the Great Plains and Midwest along with variable temperatures.
Chart Analysis: Trends in Chicago are mixed to up. Support is at 578, 564, and 558 May, with resistance at 642, 648, and 665 May. Trends in Kansas City are mixed to up. Support is at 591, 580, and 567 May, with resistance at 657, 660, and 666 May. Trends in Minneapolis are not available.

RICE
General Comments: Rice closed lower yesterday and trends are down on the daily charts. Trends are still up after a big war related rally with the war with Iran and the political problems with China not having much effect on prices. Traders anticipate less production this year in the US and around the world due to low prices. Asian Rice prices are higher due to war concerns. Trends are mixed as demand remains moderate for US Rice.
Chart Analysis: Trends are mixed. Support is at 1090, 1063, and 1055 May and resistance is at 1122, 1145, and 1152 May.

CORN AND OATS
General Comments: Corn was lower yesterday on news that President Trump and Iran were talking and that Trump has paused some US bombing raids in an effort to geet some peace. Shipping has been halted at Hormuz and some ships have been blown up. The Trump administration does not seem to have plans for the war moving forward. The war expanded yesterday when Iran bombed infrastructure in Gulf states Wire reports note that US Corn cash markets had been struggling to follow futures markets higher due to excessive supplies and the weekly export inspections report showed demand was in line with expectations. There are still excessive supplies as seen in the recent USDA reports after prices were trending higher on strong demand. Temperatures in the Midwest should variable for the next week. Conditions are called good in Argentina and big production is expected there. Oats were lower and trends are turning down on the daily and remain down on the weekly charts.
Chart Analysis: Trends in Corn are mixed to down. Support is at 444, 441, and 437 May, and resistance is at 477, 480, and 483 May. Trends in Oats are mixed to down. Support is at 314, 307, and 301 May, and resistance is at 380, 383, and 386 May

SOYBEANS
General Comments: Soybeans were higher and the products were mixed. News that President Trump has paused bombing Iran a the two sides are talking against news that the administration has invited farmers and refiners to the White House for what is expected to be a bio fuels blending requirement announcement, Soybean Oil was lower. The US-China summit has been postponed at the request of the US and because od the war. There was more news that Iran has laid mines in the straits of Hormuz and it bombed oil infrastructure in Gulf states. Shipping has been halted. The US government apparently has no idea on how to manage risks in the Hormuz or how to end the war. Big South American crops are being harvested and ideas are that Chinese buying could be interrupted due to Iran war. China has imposed new phyto controls on Brazil Soybeans to cu=t the flow of imports to the country. South American sources said that the Brazil crops are now more than 50% harvested. The tariff wars between the US and other countries add to cost of US Soybeans. Temperatures will be variable in the Midwest this week.
Analysis: Trends in Soybeans are down. Support is at 1144 1137, and 1127 May, and resistance is at 1216, 1234, and 1239 May. Trends in Soybean Meal are up. Support is at 307.00, 304.00, and 301.00 May, and resistance is at 332.00, 339.00,and 345.00 May. Trends in Soybean Oil are up. Support is at 5970, 5850, and 5800 May, with resistance at 6720, 6780, and 6840 May.

PALM OIL AND CANOLA
General Comments: Palm Oil futures was lower today due primarily to the effects on demand from the Iran wafr and on signs the wr could be winding down. Demand ideas are in a state of flux right now due to the war. Canola was lower yesterday despite the price action in Chicago and on hopes for new Chinese demand from the Carney-Xi meetings and news that the US will release new bio fuels blending requirements soon. The selling seen also came ideas of big crops in South America.
Chart Analysis: Trends in Canola are mixed to up. Support is at 682.00, 673.00, and 667.00 May, with resistance at 758.00, 764.00, and 770.00 May. Trends in Palm Oil are up. Support is at 4510, 4370, and 4310 May, with resistance at 4680, 4800, and 4860 May.