WHEAT
General Comments: Wheat closed lower again on Wednesday in holiday trading and on continued reports of big world production and weaker demand. News that Russia had bombed Ukrainian ports over the previous weekend did not move the market much as the bombing has been heavy for a couple of weeks now. Demand ideas are under pressure from ideas and reports of big competition for sales. The threat for additional bombings of freighters by either Russia or Ukraine kept futures supported to some extent. World prices were weaker last week due to reports of strong production in exporter countries and mostly the countries in the global south. Production has been good in northern hemisphere countries. Southern hemisphere crops appear to be very good. Demand has been weaker for various origins including Russia.
Chart Analysis: Trends in Chicago are mixed. Support is at 504, 500, and 494 March, with resistance at 525, 530, and 536 March. Trends in Kansas City are mixed. Support is at 514, 509, and 503 March, with resistance at 536, 540, and 550 March. Trends in Minneapolis are not available.
Image Source: Unsplash
RICE
General Comments: Rice was a little higher on Wednesday. Ideas are that the market is too cheap and that farmers have sold what they need to for now. The recent selling appears tied to the weaker prices in Asia and especially India. Trends are turning down in the market. The harvest is over in the delta and Mid South. California is about done with its harvest. Yields and quality are mixed, but quality appears better than a year ago. The cash market has been slow with low bids from buyers in domestic markets and average or less export demand.
Chart Analysis: Trends are mixed to down. Support is at 958, 925, and 916 January and resistance is at 1004, 1021, and 1028 January.
CORN AND OATS
General Comments: Corn was a little higher on Wedenesday. The demand for export and for bio energy needs has held strong. Trends are mixed. There have been ideas that traders expect weaker demand news from now on but demand overall has been very strong and above USDA projections until now. Ideas are that export demand is less now due to increased competition in the world market and ethanol demand is less as well. Reports indicate that many elevators are holding less Corn than expected. Temperatures should average near to above normal next week. Oats were slightly lower.
Overnight News: South Korea bought 132,000 tons of US Corn.
Chart Analysis: Trends in Corn are mixed. Support is at 435, 432, and 430 March, and resistance is at 453, 457, and 460 March. Trends in Oats are mixed to up. Support is at 284, 278, and 27\5 March, and resistance is at 312, 317, and 320 March.
SOYBEANS
General Comments: Soybeans and the products closed a little lower on Wednesday. It seems that the market is now more concerned about big supplies coming soon from South America with the Soybeans harvest there just weeks away. The Trump administration says that China is on pace to buy the 12 million tons of US Soybeans it announced a few weeks ago by the end of February, and China has already bought a lot to reach that goal. It is already on a record pace for imports from all origins this year. The US will have to compete with South America for sales in a diminishing Chinese market and with other world buyers and US prices are currently too high to complete many new sales anywhere in the world market except Canada and Mexico. The Chinese hog herd is being reduced and this means less demand for Soybeans and Soybean Meal. Temperatures will average near to above normal in the Midwest next week.
Analysis: Trends in Soybeans are down. Support is at 1041, 1033, and 1030 March, and resistance is at 1071, 1082, and 1086 January. Trends in Soybean Meal are mixed to down. Support is at 300.00, 298.00, and 292.00 March, and resistance is at 304.00, 307.00, and 311.00 March. Trends in Soybean Oil are mixed. Support is at 4840, 4810, and 4750 March, with resistance at 4970, 5030, and 5120 March
PALM OIL AND CANOLA
General Comments: Palm Oil futures were lower today. There are still ideas of increasing supplies available to the market along with weaker demand. There are still Indonesian plans to increase the use of Palm Oil in biofuels blends. There are still ideas of increasing production. The market sentiment overall is turning bearish on ideas of increasing stocks to the market and some concerns about demand Canola was higher. There are ideas of a big Soybeans harvest coming from South America.
Chart Analysis: Trends in Canola are mixed. Support is at 600.00, 590.00, and 584.00 March, with resistance at 616.00, 626.00, and 635.00 March. Trends in Palm Oil are mixed. Support is at 3880, 3820, and 3760 March, with resistance at 4130, 4160, and 4200 March.
More By This Author:
Softs Report - Wednesday, Dec. 31Grains Report - Tuesday, Dec. 30
Softs Report - Monday, Dec. 29
Comments
Log in or sign up to join the conversation.