Stock photos by Vecteezy

WHEAT
General Comments: Wheat markets were higher last week as the western US Great Plains remained too dry and crop conditions were very poor. Precipitation was reported in Texas last week but was very light. USDA cut demand and increased ending stocks estimates in its WASDE reports and this was a surprise for the trade that had looked for unchanged or reduced ending stocks estimates. The Russian army left a trail of atrocities in its retreat and the world is now looking to place more sanctions on Russia. US crop conditions are rated as the worst start in recent memory and ideas of reduced yield potential are around. Trends are sideways on the daily charts for Chicago Wheat and sideways to up for the Kansas City and Minneapolis market for Spring Wheat due to less than expected planted area projections from farmers and poor growing conditions for the crops in the ground. The weekly charts show that Winter Wheat futures are at an important point and can either work significantly higher or lower from here. Minneapolis Spring Wheat weekly chart trends are turning up again. Ports are closed in Ukraine and Russian shippers and exporters are not offering in part due to sanctions but mostly due to the war and the chance to lose ships due to reports of mines in the Black Sea placed by the Russians. Ukraine can rail the exports to the EU for shipment but the amount that can be moved is very limited.
Overnight News: The southern Great Plains should get mostly dry conditions. Temperatures should average near to below normal. Northern areas should see isolated showers. Temperatures will average near to below normal. The Canadian Prairies should see isolated showers. Temperatures should average near normal.
Chart Analysis: Trends in Chicago are mixed. Support is at 1014, 983, and 9477 May, with resistance at 1075, 1102, and 1156 May. Trends in Kansas City are mixed to up with objectives of 1120 and 11762 May. Support is at 1065, 1045, and 1012 May, with resistance at 1152, 1164, and 1200 May. Trends in Minneapolis are mixed to up with objectives of 2333 and 1325 May. Support is at 1097, 1091, and 1047 May, and resistance is at 1139, 1203, and 1207 May.

RICE
General Comments: Rice was mixed on Friday and lower for the week on weaker export sales of only just over 8,000 tons. Nearby months were weaker than deferred months. USDA increased domestic demand for long grain Rice and cut long grain ending stocks estimates. Medium and short-grain ending stocks levels were increased so overall Rice ending stocks were unchanged. Russia has pulled its troops back from Ukrainian cites to eastern areas it already controls and has left a string of atrocities in the wake of the withdrawal. Trends are still sideways on the daily charts. The cash market is showing that domestic mill business is around everywhere in lighter volumes. Producer sales are reported to have been way ahead of average early in the marketing year so stocks on hand in first hands are reported to be lower than normal. Growing conditions are considered good for crops right now although it has been a little cold. Planting and emergence is happening now.
Overnight News: The Delta should get scattered showers. Temperatures should be near to above normal.
Chart Analysis: Trends are mixed. Support is at 1561, 1548, and 1547 May and resistance is at 1600, 1617, and 1628 May.

CORN AND OATS
General Comments: Corn closed higher last week and futures remain at the top end of the recent trading range as the market deals with less due to the war in Ukraine and the planting intentions of US farmers for the coming growing season. Conab estimated Brazilian Corn production at 115.6 million tons, from 112.3 million in March. USDA released its latest WASDE estimates and left the domestic supply and demand estimates unchanged. It raised world ending stocks estimates.. New crop months were higher on the much reduced planted area ideas from farmers but nearby months were firmer on the war and increased nearby demand from China and others. Russia has pulled back from Ukrainian cities and many atrocities left by the army are being reported.. The potential loss of Ukraine exports of Corn makes the world situation tighter and could be enough to keep Corn prices trending higher for now, but prices remain in a sideways range. The ports remain closed and Ukraine can rail out to the EU in limited amounts. Russia is also a Corn exporter and no product is moving from either country at this time China has a Covid outbreak again and has closed some cities and some ports in response. The moves are harsh but China has a no tolerance policy about the pandemic. The closings of cities and ports will hurt the economy as people can’t make or spend money and hurt imports as there will be fewer places to unload cargoes.
Overnight News: China bought 1.02 million tons of US Corn.
Chart Analysis: Trends in Corn are mixed. Support is at 730, 727, and 716 May, and resistance is at 760, 762, and 774 May. Trends in Oats are up with objectives of 804 May. Support is at 760, 741, and 733 May, and resistance is at 774, 780, and 786 May.

SOYBEANS
General Comments: Soybeans and the products were higher last week after CONAB in Brazil estimated Soybeans production at 122.4 million tons, from 122.8 million in March. USDA increased export demand by 25 million tons and cut US ending stocks estimates, but not as much as the trade had expected. There is increasing concern in the US about the cold and wet Midwest weather keeping farmers from the fields for planting. It should turn briefly warm early this week but then will turn colder again. Russia pulled its army back from Ukrainian cities and left a trail of atrocities in its wake. More sanctions are now threatened for Russia due to what the world is seeing in Ukraine right now. There are still worries about Chinese demand because of Covid lockdowns there. Supplies available to the export market from South America remain limited. Both Ukraine and Russia are major exporters of Sunoil and control about 80% of the market combined but no Sunoil is moving from either country these days. China has been a major buyer of US Soybeans this year after a very slow start due to the problems in South America. They are buying for this year and already have booked a large amount of new crop Soybeans to cover future needs. Ideas are that the Chinese economy could slow down due to the Covid lockdowns there and cause the country to purchase less Soybeans in the world market. Shanghai has said it will remain open but asked office workers to work from home in a hybrid format. The world situation is still tightening as Brazil and Argentina harvested less Soybeans.
Overnight News:
Chart Analysis: Trends in Soybeans are mixed to up with objectives of 1720, 1790, and 1861 May. Support is at 1646, 1615, and 1606 May, and resistance is at 1698, 1739, and 1768 May. Trends in Soybean Meal are mixed. Support is at 459.00, 448.00, and 442.00 May, and resistance is at 472.00 480.00, and 485.00 May. Trends in Soybean Oil are mixed to up with objectives of 7780, 7940, and 8220 May. Support is at 7320, 7130, and 7050 May, with resistance at 7420, 7520, and 7660 May.

CANOLA AND PALM OIL
General Comments: Palm Oil was higher last week in sympathy with the rallies in Chicago Soybean Oil and slightly higher today. A new Covid outbreak is reported in China and cities and infrastructure has been shut down, including some airports and water ports. The economy could slow down and affect demand. Demand in Malaysia could improve soon as Indonesia is expected to keep most Palm Oil at home. However, production from Malaysia is expected to increase as well as the Covid lockdowns finally go away and as the weather is good for production. Indonesia is once again making moves to cut the availability of Palm Oil for export as it manages high internal prices. Canola was higher on the CONAB Brazil Soybeans estimate and in response to the dry conditions in Canada It is reported to be very dry and has been cold for planting. There are ideas of reduced Sunflower export potential from Russia and Ukraine. The market is worried about South American production as well. Canada produced a very short crop of Canola last year so supplies are tight. Futures prices are still in a trading range.
Overnight News:
Chart Analysis: Trends in Canola are mixed to up with objectives of 1185.00, 1194.00, and 1224.00 May. Support is at 1152.00, 1133.00, and 1115.00 May, with resistance at 1175.00, 1178.00, and 1183.00 May. Trends in Palm Oil are mixed. Support is at 5750, 5600, and 5480 June, with resistance at 6020, 6090, and 6170 June.