Grains Report - Friday, Jan. 22

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

Chart Analysis: Trends are mixed. Support is at 1301, 1283, and 1281 March, with resistance at 1326, 1336, and 1350 March.

selective focus photo of plant

Image Source: Unsplash

CORN AND OATS                    

General Comments: Corn and Oats were lower as funds were sellers and industry was an early buyer. Funds appear to be liquidating part of their long position and the industry appears to be buying. 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: China bought 123,000 tons of US Sorghum. 

Chart Analysis: Trends in Corn are mixed. Support is at 513, 503, and 496 March, and resistance is at 536, 542, and 545 March. Trends in Oats are mixed to up with objectives of 375 and 383 March. Support is at 354, 352, and 350 March, and resistance is at 370, 373, and 376 March.

SOYBEANS AND PRODUCTS 

General Comments: Soybeans closed slightly higher after a big early rally and Soybean Meal were lower as funds turned sellers. Funds appear to be liquidating part of their long position and the industry appears to be buying. Soybean Oil was higher on spreading against Soybean Meal and ideas of increasingly tight supplies of vegetable oils in the world. Very beneficial rains were reported in Brazil and Argentina over the weekend. Brail is starting to harvest in its earliest areas. 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 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.

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Disclaimer: A Subsidiary of Price Holdings, Inc. – a Diversified Financial Services Firm. Member NIBA, NFA Past results are not necessarily indicative of future results. Investing in ...

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