WHEAT 

General Comments: Wheat closed higher yesterday on the weaker US Dollar and stronger ag markets in general. Trends are still sideways in all three markets. Ideas have been that the US will have good demand for Wheat as the rest of the northern hemisphere is short production this year but so far demand has been average against previous years. Offer volumes are down in Europe although there has been talk of increased offers from Russia. Dry weather in southern Russia as well as the US Great Plains and Canadian Prairies caused a lot less production although Russian production was rated as stronger in the most recent USDA WASDE report. The lack of production has reduced the offers and Russia plans to announce sales quotas for next year very soon. Russia has already increased export taxes to control the flow of export Wheat out of the country. Australia has had too much rain and the crop quality should be diminished, but conditions are drier now and the harvest is moving ahead. These international moves should increase demand for US Wheat but this has not really happened yet. 

Overnight News: The southern Great Plains should get mostly dry conditions or isolated showers. Temperatures should average above normal. Northern areas should see isolated showers. Temperatures will average above normal. The Canadian Prairies should see mostly dry conditions but some scattered showers on Wednesday and Thursday. Temperatures should average below normal. 

Chart Analysis: Trends in Chicago are down with objectives of 751, 711, and 709 March. Support is at 751, 741, and 726 March, with resistance at 778, 794, and 798 March. Trends in Kansas City are mixed to down with objectives of 777, 769, and 749 March. Support is at 781, 779, and 770 March, with resistance at 816, 822, and 834 March. Trends in Minneapolis are mixed. Support is at 1020, 1009, and 1001 March, and resistance is at 1047, 1056, and 1058 March. 

Photo by Towfiqu barbhuiya on Unsplash

RICE: 

General Comments: Rice was higher on what appeared to be speculative buying. Futures and cash market trading have gone quie4t for the holidays. Many producers are done harvesting and are hunting and not interested in selling at a time that is traditionally the cheapest prices of the year. Mills have already purchased what they need for the holidays as will not show much interest in the market until the first part of the middle of next month. The cash market is reported to be relatively strong as prices have held firm despite the quiet activity. 

Overnight News:  The Delta should get isolated showers. Temperatures should be near to above normal.   

Chart Analysis: Trends are mixed to down with objectives of 1376 and 1357 January. Support is at 1360, 1350, and 1339 January and resistance is at 1380, 1400, and 1410 January.  

CORN AND OATS

General Comments: Corn closed higher yesterday on a very strong weekly export sales report and as US interior cash markets are holding strong.The weekly export sales report was the strongest of the year.The weekly charts still suggest higher prices are coming longer term and the fundamentals do as well.Corn has relatively tight supplies as farmers are mostly done harvesting and not selling.Demand has been strong for exports and very strong for Ethanol consumption.Demand will be an increasing feature in the trade moving forward and Mexico was a huge buyer yesterday.Demand has been good so far this season but a lot of business has gone to Ukraine this Fall.That is expected to change over the Winter as Ukraine exportable supplies start to run low.It could change further is Russia invades Ukraine in the future.Interior basis levels are reported to be strong due to strong demand.There are a lot of ideas that production and planted and harvested area will be significantly less next year due to the lack of fertilizers available and the cost of production. 

Overnight News:   

Chart Analysis:Trends in Corn are mixed.Support is at 582, 576, and 572 March, and resistance is at 594, 597, and 603 March.Trends in Oats are mixed.Support is at 696, 690, and 673 March, and resistance is at 723, 736, and 739 March. 

SOYBEANS 

General Comments: Soybeans and Soybean Meal closed higher yesterday and the trends are still mixed on the daily charts.Soybean Oil was higher and trends are sideways.Soybean Oil closed higher along with the price action in Crude Oil.Reports indicate that farmers are limited sellers at best.Planting and initial crop development is going very well in Brazil but it has turned dry in southern Brazil and Argentina.Rains were reported in Argentina and southern Brazil this week so any weather related concerns have been put aside for now.Brazil could have soybeans ready for export by the end of February and the crop potential is up to 150 million tons. 

Overnight News:  India bought 33,000 tons of US Soybean Oil and China bought 132,000 tons of US Soybeans. 

Chart Analysis:  Trends in Soybeans are mixed.Support is at 1266, 12137, and 1214 January, and resistance is at 1281, 1289, and 1292 January.Trends in Soybean Meal are up with objectives of 387.00 January. Support is at 370.00, 361.00, and 360.00 January, and resistance is at 376.00 381.00, and 384.00 January.Trends in Soybean Oil are mixed.Support is at 5400, 5200, and 5100 January, with resistance at 5600, 5700, and 5740 January; 

CANOLA AND PALM OIL 

General Comments: Palm Oil was slightly higher today.Improved export demand is reported but still faces headwinds due to the world wide Covid outbreak along with worries about demand.Futures are now at the lower end of the range.Reports of new lockdowns in Europe and a new variant of the Coronavirus discovered in Africa hurt demand ideas on Friday and caused speculative selling to reduce risk.Support still comes from ideas that supply and demand are in balance or supplies are short.There are ideas of tight supplies due to labor problems.There are just not enough workers in the fields due to Coronavirus restrictions.Production has also been down to more than offset the export losses so prices have trended higher.Canola was higher on price action in Chicago Soybean Oil.Farmers are bullish and reluctant to sell because of the sharp reduction in Canola production in Canada this year.  

Overnight News: 

Chart Analysis:Trends in Canola are mixed to down with objectives of 909.00, 898.00, and 858.00 January.Support is at 992.00, 976.00, and 961.00 January, with resistance at 1020.00, 1038.00, and 1044.00 January.Trends in Palm Oil are down with objectives of 4160 MarchSupport is at 4440, 4350, and 4310 February, with resistance at 4530, 4580, and 4730 March.