Grains Report - Wednesday, April 8

WHEAT
General Comments: Wheat closed higher in Chicago and ower in Kansas City yesterday on improving weather forecasts for the western Great Plains. The forecasts call for some rain in the next week or so. Trump said on that he would bomb Iran heavily string as early as tonight Iran does not make a deal. Middle eastern countries are big buyers of world Wheat, and many have been bombed by Iran now. Iran has denied the talks are happening, but the president announced a two week extension of the pause in hostilities to give negotiations more time to work. 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. Expected rain systems this week in the Great Plains could bring relief to crops produced there. The weather is now featuring precipitation is forecast for parts of the Midwest along with variable temperatures.
Chart Analysis: Trends in Chicago are mixed to down. Support is at 578, 564, and 558 May, with resistance at 612, 616, and 625 May. Trends in Kansas City are mixed to down. Support is at 591, 580, and 567 May, with resistance at 625, 638, and 648 May. Trends in Minneapolis are not available.

RICE
General Comments: Rice closed higher yesterday and trends are mixed on the daily and weekly charts. The market failed at resistance on the weekly charts. Trends are still up on the daily charts 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. USDA said that Rice planted area would be about 12% less in the coming year. Asian Rice prices are higher due to war concerns. Demand remains moderate for US Rice.
Chart Analysis: Trends are mixed. Support is at 1090, 1063, and 1055 May and resistance is at 1145, 1152, and 1166 May.

CORN AND OATS
General Comments: Corn was lower yesterday as the weather is good in the US and early planting is expected. Early planting traditionally leads to large yields. President Trump said that Iran could expect heavy bombing starting tonight if it does not accept the peace deal. 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. 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 charts and mixed to on the weekly charts.
Chart Analysis: Trends in Corn are mixed. Support is at 444, 441, and 437 May, and resistance is at 460, 470, and 474 May. Trends in Oats are mixed to down. Support is at 331, 322, and 312 May, and resistance is at 353, 360, and 380 May

SOYBEANS
General Comments: Soybeans and the products were lower yesterday as the weather for planting is good in the US. Trump said that he would resume heavy bombing of Iran tonight if that country did not accept his cease fire terms. 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 the Iran war and new import rules imposed by China. South American sources said that the Brazil crops are now more than 65% harvested. The tariff wars between the US and other countries add to cost of US Soybeans. Temperatures will be variable in the Midwest for the next week.
Analysis: Trends in Soybeans are mixed. Support is at 1144 1137, and 1127 May, and resistance is at 1180, 1216, and 1234 May. Trends in Soybean Meal are mixed. Support is at 307.00, 304.00, and 301.00 May, and resistance is at 319.00, 323.00,and 335.00 May. Trends in Soybean Oil are up. Support is at 6680, 6420, and 6350 May, with resistance at 6960, 7020, and 7080 May.

PALM OIL AND CANOLA
General Comments: Palm Oil futures was lower today as the Iran war keep bio fuels demand hopes active but mixed and Crude Oil futures and other petroleum markets weaker. Demand ideas are in a state of flux right now due to the war. Canola was lower yesterday.
Chart Analysis: Trends in Canola are mixed. Support is at 709.00, 701.00, and 682.00 May, with resistance at 736.00, 743.00, and 758.00 May. Trends in Palm Oil are mixed. Support is at 4720, 4650, and 4540 July, with resistance at 4920, 4980, and 5040 July.