Grains Report - Tuesday, March 17

Photo by IKRAM ULLAH on Unsplash

WHEAT
General Comments: Wheat closed lower in Chicago and in KC yesterday in response to the war in Iran and news that the US-China summit has been postponed due to the war and at the request of the US. The weekly export inspections report showed sas expected demand. 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 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, 660, and 666 May. Trends in Minneapolis are not available.

RICE
General Comments: Rice closed a little higher yesterday. Trends are still up after a big war related rally with yje 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 1105, 1093, and 1063 May and resistance is at 1152, 1164, and 1176 May.

CORN AND OATS
General Comments: Corn was ;lower yesterday on more news that Iran had laid mines in the straits of Hormuz and that meeting with China and the US had been postponed at the US request. Shipping has been halted at Hormuz and some ships have been blown up. 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 mixed on the daily and weekly charts.
Chart Analysis: Trends in Corn are mixed. 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 380, 383, and 386 May

SOYBEANS
General Comments: Soybeans and the products were sharply lower to limit down yesterday on news that the US=China summit has been postponed at the request of the US and because od the wart. There was more news that Iran has laid mines in the straits of Hormuz. Shipping has been halted. Big South American crops are being harvested and ideas are that Chinese buying could be interrupted due to the 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 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 closed lower today along with price action in Chicago. 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 lower yesterday along with the price action in Chicago and despite hopes for new Chinese demand from the Carney-Xi meetings and the u war with Iran that could be over 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.