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WHEAT

General Comments: Wheat closed a little higher yesterday on a lack of news from Ukraine or Russia, and demand for Wheat in export markets remains limited.  The StatsCan report showed increased Wheat production.  The weekly export sales report showed that demand was in line with expectations, but the report was for October sales.  The threat for additional bombings of freighters by either Russia or Ukraine kept futures supported to some extent.  World prices turned 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.  In Australia, the government’s ABARES agency raised its forecast for the country’s 2025/26 wheat production by around 1.8 million tons to 35.6 million tons. That followed recent upward revisions to forecasts of Argentina’s crop, which is expected to reach a record volume.

Chart Analysis: Trends in Chicago are mixed.  Support is at 524, 517, and 507 March, with resistance at 555, 560, and 573 March.  Trends in Kansas City are mixed.  Support is at 506, 501, and 494 March, with resistance at 540, 550, and 553 March. Trends in Minneapolis are not available.

RICE

General Comments: Rice was higher yesterday despite a mediocre weekly export sales report.  The sales report was still covering October data as USDA catches up with data left unreported due to the government shutdown.  Commercials were only light buyers.  Ideas are that the market is too cheap and that farmers have sold what needs to be sold for now.  The recent selling has been to be relentless and appears tied to the weaker prices in Asia and especially India.  Trends are mixed 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.  The charts show that futures are in a short term trading range.

Chart Analysis: Trends are mixed.  Support is at 976, 964, and 952 January and resistance is at 1028, 1056, and 1068 January.

CORN AND OATS

General Comments: Corn was higher yesterday as the weekly export sales report held strong.  There have been ideas that traders expect weaker demand news from now on.  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 elevatorxs are holding less Corn than expected.  Trends are mixed in the market.  Temperatures should average below normal this week.  Oats were lower, but trends are turning up anyway.

Overnight News:  Mexico bought 392,500 tons of US Corn and Colombia bought 100,800 tons of US Corn.

Chart Analysis:  Trends in Corn are mixed.  Support is at 430, 426, and 423 March, and resistance is at 452, 455, and 457 March.  Trends in Oats are mixed.  Support is at 309, 302, and 297 March, and resistance is at 320, 323, and 325 March.

SOYBEANS

General Comments: Soybeans and Soybean Oil was higher yesterday as no new sales announcements were made by USDA to China or anywhere else.  There was some talk that China had bought more US Soybeans but this was not confirmed by USDA yesterday.  USDA announced new sales today.  The Trump administration says, however, 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.  The US will have to compete with South America for sales in a diminishing Chinese market and US prices are currently too high to complete many new sales.  The Chinese hog herd is being reduced and this means less demand for Soybeans and Soybean Meal.  Temperatures will average below normal in the Midwest this week.

Overnight News: China bought 462,000 tons of US Soybeans.

Analysis:  Trends in Soybeans are mixed.  Support is at 1114, 1103, and 1071 January, and resistance is at 1148, 1169, and  1184 January.  Trends in Soybean Meal are mixed.  Support is at 307.00, 304.00, and 301.00 January, and resistance is at 319.00, 323.00, and 333.00 January.  Trends in Soybean Oil are mixed.  Support is at 5100, 4980, and 4930 January, with resistance at 5320, 5420, and 5510 January.

PALM OIL AND CANOLA

General Comments: Palm Oil futures were higher today on some strength in competing markets and ideas of harvest delays in Malaysia due to flooding concerns. 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 lower and trends are down on the daily charts.  StatsCan reported that the country has produced a big Canola crop this year.

Chart Analysis: Trends in Canola are down.  Support is at 618.00, 616.00, and 610.00 January, with resistance at 645.00, 650.00, and 655.00 January.  Trends in Palm Oil are down.  Support is at 4010, 3940, and 3880 February, with resistance at 4200, 4270, and 4300 February.

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