WHEAT
General Comments: Wheat markets were higher yesterday. It was another relatively narrow range day, but it is possible that Wheat is trying to find a bottom at this time. Kansas City and Minneapolis prices now appear headed higher but Chicago remains in a trading range. The funds maintain a huge short position in this market. The problem remains demand as world supplies are not so large and US inventories are less as well. Ideas that big Russian offers and cheaper Russian prices would be a feature for a while in the world market was the driving force for the weaker prices, and price weakness could continue. The war in Ukraine continues, but Russia is expected to allow the grain export program to continue in one form or another. Ideas are that both Australia and Russia are harvesting record to near record Wheat crops this year. Russia has a large production and is undercutting most world prices in the international market. The demand for US Wheat in international markets has been a disappointment all year and has been hindered by low prices and aggressive offers from Russia.
Overnight News: The southern Great Plains should get isolated showers. Temperatures should be near to below normal. Northern areas should see mostly dry conditions. Temperatures will average near to below normal. The Canadian Prairies should see mostly dry condition. Temperatures should average above normal.
Chart Analysis: Trends in Chicago are mixed, Support is at 702, 692, and 680 May, with resistance at 722, 738, and 742 May. Trends in Kansas City are mixed to up with objectives of 837 and 852 May. Support is at 822, 807, and 800 May, with resistance at 837, 853, and 862 May. Trends in Minneapolis are mixed to up with objectives of 880 and 891 May. Support is at 869, 860, and 857 March, and resistance is at 880, 887, and 892 May.

RICE
General Comments: Rice was higher again yesterday despite weak export sales as offers into the market appear less. Demand has been good from domestic sources. Export demand has been uneven. Demand has been an issue for the market all year. There is not much going on in the domestic market right now although mills are milling for the domestic market in Arkansas and are bidding for some Rice. Markets from Texas to Mississippi are called quiet. Demand in general has been slow to moderate for Rice for exports.
Overnight News: The Delta should get mostly dry conditions. Temperatures should be above normal.
Chart Analysis: Trends are up with no objectives. Support is at 1742, 1724, and 1714 May and resistance is at 1762, 1773, and 1779.

Photo by Melissa Askew on Unsplash

CORN AND OATS
General Comments: Corn closed a little lower yesterday on ideas of weak demand. Oats closed a little lower. The export inspections report released Monday afternoon showed bad exports once again and the US is falling far behind the pace to meet USDA targets. The export sales report showed weaker sales as well. The lack of demand has been a reason for all the selling in the last seven days. Wire reports yesterday showed that India is now making sales to Southeast Asia instead of the US. US prices are currently very competitive with those from South America and US demand could improve because of the price differentials. Prices from South America should now remain strong as countries there concentrate on Soybeans exports, so the US has a chance now to see export demand improve. Brazil has been hanging on for its Summer crop although losses are now being reported. The situation is now more stable in southern Brazil and northern Argentina after recent rains, but the situation in central and southern Argentina remains stressed. Argentina has suffered through some extreme drought and losses could be large. The Brazil Winter crop is harvested and China has been buying the surplus. The Summer crop and the Argentine crop is developing under stressful conditions. The next Winter crop is going into the ground in good conditions, but it has been wet so the Soybeans harvest has been delayed and the Corn planting is becoming delayed as well. Reports indicate that the weather is now better in central and northern Brazil and that the Corn planting pace is much improved. However, Brazil sources say that 20% of the Winter crop could be planted outside of the ideal window so yields could be hurt in the end. China released its PMI data earlier this week and the PMI weas above expectations. It was considered positive for new demand potential from China.
Overnight News:
Chart Analysis: Trends in Corn are mixed. Support is at 630, 622, and 615 May, and resistance is at 637, 641, and 645 May. Trends in Oats are down with objectives of 327 and 312 May. Support is at 330, 325, and 322 May, and resistance is at 338, 342, and 345 May.

SOYBEANS
General Comments: Soybeans and the products were higher on speculative buying despite a weak export sales report that showed Soybeans sales at a marketing year low. Soybeans export demand is flowing to Brazil now. Argentina is the world’s largest exporter of Soybeans products while the US and Brazil battle for supremacy in Soybeans exports. The South American harvest coming to export channels in the near future and the lack of exports for the US has hurt the price action and created down trends for Soybeans and sideways to down trends for the products. It remains hot and dry in Argentina and crop conditions are getting worse. Weather is becoming less important now as the harvest is already underway in central and northern Brazil and will spread south soon. Sothern Brazil and northern Argentina are getting enough rain to stabilize conditions and production losses but central and southern Argentina remain very dry. Central and northern Brazil have seen harvest operations interrupted with too much rain but the weather is now improving and the harvest pace is increasing. Production potential for the Brazil is called very strong even with potential problems and losses in the south. Argentine production ideas continue to drop with the drought as planting is delayed and the crops already in the ground are stressed. Chinese demand is expected to improve in the world market and especially in Brazil with the country now open and many starting to move beyond Covid and create life and opportunity again.
Overnight News:
Chart Analysis: Trends in Soybeans are mixed to down with objectives of 1458 and 1408 May. Support is at 1489, 1478, and 1476 May, and resistance is at 1520, 1522, and 1530 May. Trends in Soybean Meal are mixed to down with objectives of 462.00 and 446.00 March. Support is at 465.00, 462.00, and 457.00 May, and resistance is at 478.00, 484.00, and 485.00 May. Trends in Soybean Oil are mixed to up with objectives of 6220 May. Support is at 6090, 605a0, and 5970 May, with resistance at 6250, 6380, and 6440 May.

CANOLA AND PALM OIL
General Comments: Palm Oil closed higher today in response to Chinese PMI data that showed that the Chinese economy is recovering and implied that China could soon increase Palm Oil imports. Futures were also higher on reports of flooding in Malaysia. China was a noted buyer of Palm Oil last week. Indonesia is now revoking some export permits to keep internal prices controlled and to support the bio fuels industry. The controls are expected to last through Ramadan. China has tried to relax some Covid restrictions so that the economy can start to function again. However, new outbreaks of the virus are being reported and infection rates are rapidly increasing but will start to decrease soon as most have now had Covid. Peninsular Malaysia is getting flooding rains. Flash floods are being reported. Canola was slightly higher in narrow range trading on demand concerns as ideas that Brazil will capture demand for the world market. Brazil is expected t dominate the oilseeds market for the next few months. Reports indicate that domestic demand has been strong due to favorable crush margins. Production was much improved this year on better weather during the Summer. It is dry in the southern and southwestern prairies now and this could mean reduced yields when the production season begins in a couple of months.
Overnight News:
Chart Analysis: Trends in Canola are mixed. Support is at 816.00, 811.00, and 803.00 May, with resistance at 827.00, 835.00, and 836.00 May. Trends in Palm Oil are up with no objectives. Support is at 4270, 4220, and 4130 May, with resistance at 4420, 4440, and 4620 May,

Midwest Weather Forecast: rain and snow to the south. Temperatures should average near to above normal.

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