Grains Report - Tuesday, March 10

Melissa Askew - Unsplash

WHEAT
General Comments: Wheat closed lower yesterday as all markets fell in response to news that many countries will open strategic oil reserves in response to the war in Iran. 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 and too wet in western Europe for best production and quality potential. There is talk that Argentine Wheat is being sold into the southeastern US. There are higher prices paid in overseas markets and on drier weather in the Great Plains. The weather is now averaging above normal temperatures and some light precipitation is forecast for parts of the Great Plains and Midwest. 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, but no losses have been reported although some damage is possible.
Chart Analysis: Trends in Chicago are mixed to up. Support is at 583, 564, and 558 May, with resistance at 642, 648, and 665 May. Trends in Kansas City are mixed to up. Support is at 595, 580, and 567 May, with resistance at 657, 654, and 6w60 May. Trends in Minneapolis are not available.

RICE
General Comments: Rice closed higher yesterday. Trends are up after a big war related rally as world supplies and trade in Rice could be disrupted, especially in the region near Iran. 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 1105, 1093, and 1063 May and resistance is at 1129, 1152, and 1164 May.

CORN AND OATS
General Comments: Corn was lower yesterday on news that many countries are opening strategic reserves of petroleum to combat soaring 0prices. Early buying came on the back of the Iran war that has rallied petroleum prices and increase demand for ethanol. 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 average near to above normal for the next week. Conditions are called good in Argentina and big production is expected there. Oats were higher and trends are up on the daily and weekly charts.
Chart Analysis: Trends in Corn are up. Support is at 444, 441, and 437 May, and resistance is at 477, 480, and 483 May. Trends in Oats are mixed. Support is at 314, 307, and 301 May, and resistance is at 352, 355, and 358 May

SOYBEANS
General Comments: Soybeans and the products were lower as many countries are opening strategic reserves of oil to help combat the high petroleum prices caused by the war with Iran. Big South American crops are being harvested and ideas are that Chinese buying could be interrupted due to the Iran war. 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 average near to above normal in the Midwest this week.
Analysis: Trends in Soybeans are up. Support is at 1188 1171, and 1158 May, and resistance is at 1246, 1258, and 1270 May. Trends in Soybean Meal are up. Support is at 309.00, 307.00, and 304.00 May, and resistance is at 328.00, 330.00, and 339.00 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 higher last week and are higher 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 caused by the war. Production is expected to drop in the short term. Canola was higher yesterday on hopes for new Chinese demand from the Carney-Xi meetings and the u war with Iran. The selling seen 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 4330, 3990, and 3870 May, with resistance at 4500, 4560, and 4620 May.