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WHEAT

General Comments: Wheat closed mixed yesterday before the release of the USDA WASDE and production reports that are coming later today.  The market expects to see increased ending stocks estimates.  There has been no new China demand news or rumors and the weekly export inspections were down.  The weekly USDA reports will  start again soon with the government open again.  Southern hemisphere crops appear to be good.

Chart Analysis: Trends in Chicago are mixed to down.  Support is at 524, 517, and 505 December, with resistance at 555, 560, and 573 December.  Trends in Kansas City are mixed tso up.  Support is at 506, 501, and 494 December, with resistance at 540, 545, and 548 December. Trends in Minneapolis are not available.

RICE

General Comments Rice was lower yesterday despite news that Iraq has bought 88,000 tons of milled Rice.  Bearish USDA reports are expected later today.  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 down in the market.  The harvest is wrapping up in the delta and Mid South.  California is also 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.

Chart Analysis: Trends are mixed.  Support is at 1020, 1012, and 1000 January and resistance is at 1074, 1086, and 1101 January.

CORN AND OATS

General Comments: Corn was higher yesterday on ideas and reports of strong export demand.  Trends are now up in the market.  The weekly export sales report from late September showed that Corn demand held strong.  USDA will issue additional reports today and next week.  The November WASDE and production reports are to be issued later today and Corn production is expected to be strong, but below the September estimates.  Ending stock levels are expected to be about unchanged.  There is talk in the country that Corn production is being overestimated by analysts.  The harvest is winding down in all areas of the Midwest.  There are ideas that US production might not be super strong due to disease such as rust to offset the demand losses.  Temperatures should average above normal by this weekend and there are forecasts for mostly dry conditions.  Oats were higher.

Chart Analysis:  Trends in Corn are up.  Support is at 425, 422, and 419 December, and resistance is at 442, 450, and 456 December.  Trends in Oats are mixed to up.  Support is at 306, 302, and 297 December, and resistance is at 316, 324, and 338 December.

SOYBEANS

General Comments: Soybeans and Soybean Meal were higher again yesterday as the government is now open again.  Soybean Oil was lower.  There was no talk of new Chinese demand although the market hopes for more.  China bought cargoes over a week ago but has not been reported to buy anything since. China is almost done with purchases for this year and as the US will have to compete with South America for sales in a diminishing Chinese market.  The Chinese hog herd is being reduced and this means less demand for Soybeans and Soybean Meal.  The US government has announced that it will support farmers with money, but so far no money has been flowing.  Forecasts call for mostly dry conditions to be seen in the Midwest.  Temperatures will average above normal by this weekend.  Export demand remains less for US Soybeans as China has been taking almost all the export from South America due to the Trump tariff regime.  USDA will release its latest production and supply and demand estimates later today.  Ideas are the production could be about 200 million bushels less than in September and that ending stocks could be a little lower

Analysis:  Trends in Soybeans are up.  Support is at 1130, 1119, and 1103 January, and resistance is at 1154, 1160, and  1172 January.  Trends in Soybean Meal are up.  Support is at 320.00, 316.00, and 311.00 December, and resistance is at 331.00, 337.00, and 343.00 December.  Trends in Soybean Oil are mixed.  Support is at 4930, 4890, and 4770 December, with resistance at 5110, 5040, and 5180 December.

PALM OIL AND CANOLA

General Comments: Palm Oil futures were near unchanged again today.  Futures reacted to the stronger Ringgit and weaker Chicago prices.  There was some buying seen on Indonesian plans to increase the use of Pam Oil in biofuels blends.  There are ideas of increasing supplies, but those ideas are now turning as production enters a seasonal slowdown.  There are still ideas of increasing production.  The market sentiment overall is turning bearish on ideas of increasing stocks to the market and on some concerns about demand Canola was a little higher.  Trends are mixed on the daily charts and on the weekly charts.

Chart Analysis: Trends in Canola are mixed.  Support is at 636.00, 632.00, and 625.00 January, with resistance at 656.00, 661.00, and 671.00 January.  Trends in Palm Oil are mixed.  Support is at 4110, 4070, and 4030 February, with resistance at 4200, 4250, and 4300 February.

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