WHEAT        

General Comments: Wheat markets were lower but held the trading range for one more day. Chart trends are mostly mixed again. The weekly export sales report yesterday showed poor sales. Ideas are that forecasts for rain in the Great Plains will help injured Winter Wheat. The threat of Winterkill production losses in the western Great Plains now appears to be part of the price. Temperatures dropped below 0F in many areas and that is cold enough to kill an unprotected crop. The actual damage will take some time to see under warmer temperatures and it might take until harvest to see the full effects of the recent extreme cold.

Overnight News:The southern Great Plains should get mostly dry conditions. Temperatures should be near to above normal. Northern areas should see mostly dry conditions. Temperatures will be above normal. The Canadian Prairies should see isolated showers or dry conditions. Temperatures should average above normal.

Chart Analysis:Trends in Chicago are mixed. Support is at 646, 642, and 637 May, with resistance at 669, 672, and 680 May. Trends in Kansas City are mixed to down with objectives of 622 and 601 May. Support is at 620, 616, and 608 May, with resistance at 640, 645, and 652 May. Trends in Minneapolis are mixed. Support is at 631, 628, and 625 May, and resistance is at 650, 659, and 662 May.

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RICE  

General Comments: Rice was lower as the commercial short covering dried up and speculative selling was noted. Trends are still up on the daily charts. The weekly export sales report was moderately strong. The cash market has not felt any increased demand lately and mill operations are reported to be on the slow side. Exports were moderate last week. Texas is about out of Rice, but there is Rice available in the other states, especially Arkansas. Asian and Mercosur markets were steady to firm last week.

Overnight News:  The Delta should get mostly dry conditions. Temperatures should be near to below normal.

Chart Analysis: Trends are up with objectives of 1380 May. Support is at 1325, 1310, and 1303 May, with resistance at 1351, 1356, and 1367 May.

CORN AND OATS:  

General Comments:Corn closed lower on weaker demand ideas and Oats were higher. The weekly export sales report from USDA yesterday showed very poor sales but did feature a change from unknown destinations to China and that China canceled one load of Corn from the current crop and bought one for the next crop. Reports of Asian Swine Fever in China hurt Corn buying and brought buying into hogs. Chinese demand had been strong until recently and it looks like they need the Corn either way. Prices inside China for Corn remain extremely high. It is raining in central and parts of northern Brazil in the last week, but farmers were still able to harvest some of the Soybeans area and plant some of the Winter Corn around the precipitation. The Winter Corn crop is on a very slow pace to be planted and progress is well behind normal. Argentina is now drier and Corn in Argentina could be stressed. Southern Brazil got showers. The main crop harvest has started in parts of Brazil, but progress will be slow due to the late planting dates due to dry conditions earlier in the year. The second crop of Corn planting is also being delayed and yield estimates for South American Corn have been reduced.

Overnight News:

Chart Analysis: Trends in Corn are mixed. Support is at 529, 527, and 518 May, and resistance is at 541, 551, and 554 May. Trends in Oats are mixed to up with objectives of 386 and 412 May. Support is at 368, 360, and 355 May, and resistance is at 373, 376, and 379 May.

SOYBEANS 

General Comments: Soybeans and Soybean Oil closed higher and Soybean Meal closed lower on ideas of reduced Chinese demand. Soybeans rallied initially on the strong export sales report but gave back a lot of the rally on the stronger US Dollar. China has been the nig buyer of Soybeans until now but that demand appears to have shifted to South America on a seasonal basis. Wet weather in northern Brazil has caused harvest delays and some quality problems. Soybeans are reported to be shattering in the region due to too much rain and arrivals at ports and silos have been very wet. Selling came on ideas that the impending Brazil harvest will kill current demand for US Soybeans. Demand was less last week in the weekly export data and was about the worst of the marketing year. The Brazil harvest has been delayed due to late planting dates early due to dry weather and now too much rain. Rains are coming to an end in some areas so harvest activities have increased but the harvest remains very slow overall and well behind normal.  China has been buying for this year and next year here but also in South America. The strong demand for exports and for domestic use means there is little room for error and that the US could even come close to running out of Soybeans to sell.

Overnight News:  

Chart Analysis: Trends in Soybeans are mixed. Support is at 1368, 1352, and 1337 May, and resistance is at 1432, 1446, and 1450 May. Trends in Soybean Meal are mixed. Support is at 414.00, 405.00, and 395.00 May, and resistance is at 425.00, 434.00, and 442.00 May. Trends in Soybean Oil are up with objectives of 5150 and 5300 May. Support is at 4990, 4860, and 4850 May, with resistance at 5180, 5240, and 5300 May.

CANOLA AND PALM OIL        

General Comments: Palm Oil closed higher on strength in the outside markets. The export news has been good with February exports holding to stronger levels than January. The concern is that the higher price with the higher tax would scare away would be buyers. 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. Wet weather has caused even more delays. Canola closed higher. The market has been very strong on demand against very limited supplies in the country.

Overnight News:

Chart Analysis: Trends in Canola are up with objectives of 840.00 and 9120.00 May. Support is at 769.00, 742.00, and 735.00 May, with resistance at 802.00, 808.00, and 814.00 May. Trends in Palm Oil are mixed. Support is at 3670, 3600, and 3560 May, with resistance at 3800, 3820, and 3860 May.