Grains Report - Tuesday, Feb. 10

WHEAT
General Comments: Wheat closed a little lower yesterday on the weather that has moderated to above normal temperatures. Temperatures were cold enough a couple of weeks ago to promote Winterkill. The snow came after the cold weather was a factor. Concerns on the condition of the Winter Wheat crops moving forward are growing as there is little snow cover and some very cold temperatures are occurring that could have created Winterkill over the weekend again. Many parts of the Great Plains are too dry for best yield potential.
Chart Analysis: Trends in Chicago are mixed. Support is at 519, 502, and 510 March, with resistance at 545, 555, and 563 March. Trends in Kansas City are mixed. Support is at 525, 516, and 508 March, with resistance at 550, 553, and 559 March. Trends in Minneapolis are not available.

RICE
General Comments: Rice was a little lower yesterday in consolidation trading and trends are still up. Futures have been recovering for the last month after a very long and sizable down move. Traders anticipate less production this year in the US and around the world due to low prices. Weaker world prices are expected by the FAO in the coming year. Asian Rice prices are under pressure now due to a weaker Indian Rupee that forced costs for Indian Rice lower. Trends are up in the market but demand remains moderate for US Rice.
Chart Analysis: Trends are up. Support is at 1090 1087, and 1069 March and resistance is at 1139, 1145, and 1154 March.

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CORN AND OATS
General Comments: Corn was lower yesterday. Trends are mixed due to excessive supplies as seen in the recent USDA reports after trending higher in recent weeks to the recent demand based rally and after production was increased in the annual report. USDA increased production in the annual reports and the increased supplies have made it hard for prices to rally at all despite reports of strong demand. Temperatures in the Midwest should average above normal next week. Oats were lower and trends are mixed.
Chart Analysis: Trends in Corn are down. Support is at 417, 414, and 411 March, and resistance is at 445, 453, and 465 March. Trends in Oats are mixed to up. Support is at 284, 278, and 27\5 March, and resistance is at 317, 320, and 326 March.

SOYBEANS
General Comments: Soybeans and the products were lower yesterday as the big South American crops were in the news. South American sources said that the Brazil crops are now 16% harvested. There are ideas of additional Chinese demand soon but it will be up to the government to buy as US Soybeans are too high priced for commercial demand from China or almost anywhere else. The tariff wars between the two countries add another layer of cost onto the Soybeans. It still seems that the market is now more concerned about big supplies coming soon from South America with the Soybeans harvest there now underway. Temperatures will average above normal in the Midwest next week.
Analysis: Trends in Soybeans are mixed. Support is at 1082, 1070, and 1064 March, and resistance is at 1116, 1124, and 1138 March. Trends in Soybean Meal are mixed. Support is at 286.00, 283.00, and 280.00 March, and resistance is at 311.00, 316.00, and 321.00 March. Trends in Soybean Oil are up. Support is at 5490, 5410, and 5340 March, with resistance at 5680, 5740, and 5800 March.

PALM OIL AND CANOLA
General Comments: Palm Oil futures were lower today on reports of weaker demand from private sources. Ideas of increasing seasonal demand and on 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 other looking for improved demand. Production is expected to drop in the short term. Canola was higher yesterday on mostly speculative buying and strong demand ideas. Canada and China reached agreement on a new trade deal which is expected to result in part in new sales of Canola to China There are ideas of a big Soybeans harvest coming from South America.
Chart Analysis: Trends in Canola are mixed to up. Support is at 638.00, 634.00, and 623.00 March, with resistance at 668.00, 674.00, and 680.00 March. Trends in Palm Oil are up. Support is at 4150, 4070, and 4010 April, with resistance at 4350, 4420, and 4540 April.

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