Grains Report - Wednesday, Jan. 20

WHEAT        

General Comments:   Winter Wheat markets were mixed to a little higher, with Chicago SRW a little lower and the other markets mostly a little higher. The trade is keeping an eye on Russia for price direction. Russia is raising its export taxes in mid-March and the world market has rallied in response. Northern weather has improved with snow in the Great Plains except for some southern areas that remain dry. Canada is also better, and some rain and snow has fallen in southern Russia. It remains much drier than normal in Argentina.

Overnight News: The southern Great Plains should get isolated showers or dry conditions. Temperatures should be above normal. Northern areas should see mostly dry conditions. Temperatures will be above normal. The Canadian Prairies should see mostly dry conditions. Temperatures should average above normal.

Chart Analysis: Trends in Chicago are mixed to up with objectives of 686 and 721 March. Support is at 664, 653, and 648 March, with resistance at 681, 693, and 699 March. Trends in Kansas City are up with objectives of 663 and 674 March. Support is at 639, 616, and 602 March, with resistance at 652, 660, and 666 March. Trends in Minneapolis are up with no objectives. Support is at 636, 630, and 618 March, and resistance is at 656, 662, and 668 March.

RICE  

General Comments:  Rice was higher last week and made a new weekly high close. The move caught traders by surprise.USDA showed a sharp increase in domestic demand in its reports on Tuesday and cut ending stocks levels. The cash market has not felt any increased demand lately and mill operations are reported to be on the slow side. Exports have been less in the last week and USDA showed this in the weekly export sales report. Exports had been strong until recently. Some traders are looking ahead to next year and are wondering how much Rice will get planted. Our ideas are that a normal crop will get planted as Rice prices compare favorably with Corn, Cotton, and Soybeans.

Overnight News:  The Delta should get scattered showers. Temperatures should be above normal.

Chart Analysis: Trends are up with no objectives. Support is at 1301, 1283, and 1281 March, with resistance at 1326, 1336, and 1350 March.

Trends are up with no objectives. Support is at 1301, 1283, and 1281 March, with resistance at 1326, 1336, and 1350 March.

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CORN AND OATS                    

General Comments:  Corn and Oats were lower on apparent fund selling. Trends are still up in both markets. Export demand has held relatively strong as US Corn is about the cheapest feed grain in the world market. It has rained in central and northern Brazil in the last week. Southern Brazil and Argentina got some very beneficial rain over the weekend. It will turn dry again in Argentina this week. Drought could develop in Brazil and Argentina as the overall weather patterns have been dry and as dry weather is in the forecast for Argentina and southern Brazil. The drought is especially serious in South America for the first Corn crop but the second crop could also be affected due to late planting in central and northern Brazil. Dry weather has delayed the Soybeans planting and that will delay the second Corn planting later.

Overnight News:   

Chart Analysis: Trends in Corn are mixed to up with no objectives. Support is at 519, 517, and 513 March, and resistance is at 538, 542, and 545 March. Trends in Oats are mixed to up with objectives of 375 and 383 March. Support is at 358, 352, and 350 March, and resistance is at 370, 373, and 376 March.

SOYBEANS AND PRODUCTS 

General Comments: Soybeans and the products closed lower on apparent fund selling. Very beneficial rains were reported in Brazil and Argentina over the weekend. Production potential is being threatened in South America due to the lack of rainfall. The situation is improved in central and northern Brazil and has temporarily improved in southern Brazil and Argentina. Brazil's production prospects are now stronger due to the rains, but the harvest will be slow due to the late planting. The world will need very strong production from South America to meet the projected demand. The stocks to use ration for Soybeans is now very small and the situation is the tightest projected in years.

Overnight News:  

Chart Analysis: Trends in Soybeans are mixed. Support is at 1369, 1346, and 1329 March, and resistance is at 1436, 1448, and 1460 March. Trends in Soybean Meal are up with objectives of 471.00 March. Support is at 444.00, 441.00, and 430.00 March, and resistance is at 464.00, 471.00, and 474.00 March. Trends in Soybean Oil are mixed to down with objectives of 4020 March. Support is at 4100, 4060, and 4040 March, with resistance at 4200, 4250, and 4300 March.

CANOLA AND PALM OIL        

General Comments:  Palm Oil closed sharply lower as export volumes have been much less so far in January. Exports have been running at 44% less than last month so far, and the trend is expected to continue for the balance of the month. The market had been supported by ideas of tight supplies. The production of Palm Oil is down in both Malaysia and Indonesia as plantations in both countries are having trouble getting workers into the fields. Canola was lower on the price action in Chicago and Malaysia.

Overnight News:

Chart Analysis: Trends in Canola are mixed. Support is at 664.00, 660.00, and 657.00 March, with resistance at 687.00, 693.00, and 696.00 March.  Trends in Palm Oil are down with objectives of 3120 April. Support is at 3190, 3160, and 3120 April, with resistance at 3370, 3420, and 3480 April.