WHEAT        

General Comments: Wheat markets were lower once again as funds remained sellers. Funds appear to be liquidating part of their long position and the industry appears to be buying. Futures made the lows early in the session, then rallied most of the day to still close lower. 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 or scattered showers. Temperatures should be near to below normal. Northern areas should see scattered to isolated showers. Temperatures will be near to above normal. The Canadian Prairies should see isolated showers. Temperatures should average below normal.

Chart Analysis: Trends in Chicago are mixed. Support is at 653, 638, and 629 March, with resistance at 681, 693, and 699 March. Trends in Kansas City are mixed to up with objectives of 663 and 674 March. Support is at 633, 616, and 602 March, with resistance at 648, 652, and 660 March. Trends in Minneapolis are mixed. Support is at 636, 630, and 618 March, and resistance is at 644, 656, and 662 March.

RICE  

General Comments: Rice was a little higher again yesterday after another choppy session. The futures market has held to a trading range so far this week. The trade is talking up additional domestic demand as did USDA in the reports last week. 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. 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 mixed. Support is at 1301, 1283, and 1281 March, with resistance at 1326, 1336, and 1350 March.

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.

Overnight News: China bought 136,000 tons of US Soybeans. 

Chart Analysis: Trends in Soybeans are mixed. Support is at 1352, 1346, and 1329 March, and resistance is at 1403, 1436, and 1448 March. Trends in Soybean Meal are mixed. Support is at 430.00, 426.00, and 421.00 March, and resistance is at 451.00, 464.00, and 471.00 March. Trends in Soybean Oil are mixed to up with no objectives. Support is at 4230, 4190, and 4130 March, with resistance at 4370, 4420, and 4470 March.

CANOLA AND PALM OIL        

General Comments: Palm Oil closed lower on demand concerns. 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 higher on the price action in Chicago and Malaysia.

Overnight News:

Chart Analysis: Trends in Canola are mixed to down with no objectives. Support is at 646.00, 636.00, and 631.00 March, with resistance at 664.00, 674.00, and 687.00 March. Trends in Palm Oil are mixed to down with objectives of 3120 April. Support is at 3240, 3160, and 3120 April, with resistance at 3380, 3420, and 3480 April.