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WHEAT

General Comments: Wheat closed a little higher in Chicago and KC last week.  The weekly charts show that trends are in a short term range.  World prices turned weaker last week due to reports of strong production in exporter countries.  Production has been good in northern hemisphere countries.  Southern hemisphere crops appear to be very good.  Demand has been weaker for various origins including Russia.

Chart Analysis: Trends in Chicago are mixed to up.  Support is at 524, 517, and 507 March, with resistance at 555, 560, and 573 March.  Trends in Kansas City are mixed.  Support is at 506, 501, and 494 March, with resistance at 534, 540, and 550 March. Trends in Minneapolis are not available.

RICE

General Comments: Rice was lower last week as the selling in this market continues unabated.  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 over in the delta and Mid South.  California is 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.  The charts show that futures are in a short term trading range.

Chart Analysis: Trends are mixed to down.  Support is at 1000, 988, and 976 January and resistance is at 1056, 1068, and 1074 January.

CORN AND OATS

General Comments: Corn was higher last week.  Ideas are that demand is less now due to increased competition in the world market.  Trends are mixed in the market.  The harvest is almost over 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 below normal this week and there are forecasts for some rain early this week.  Oats were lower, but trends are turning up anyway.

Chart Analysis:  Trends in Corn are mixed to up.  Support is at 430, 426, and 423 March, and resistance is at 440, 442, and 445 March.  Trends in Oats are mixed to up.  Support is at 309, 302, and 297 March, and resistance is at 315, 323, and 325 March.

SOYBEANS

General Comments: Soybeans and Soybean Oil were higher last week, but Soybean Meal closed a little lower.  The White House said it was talking to Chin about Soybeans again and that a deal is within reach again.  A deal had been announced several weeks ago for massive Soybeans purchases by China but apparently as of now it was not real.  The US will have to compete with South America for sales in a diminishing Chinese market and US prices are currently too high to complete many new sales.  The Chinese hog herd is being reduced and this means less demand for Soybeans and Soybean Meal.  Temperatures will average below normal in the Midwest this week.

Analysis:  Trends in Soybeans are mixed.  Support is at 1114, 1103, and 1071 January, and resistance is at 1148, 1169, and  1184 January.  Trends in Soybean Meal are mixed.  Support is at 313.00, 307.00, and 304.00 January, and resistance is at 325.00, 333.00, and 337.00 January.  Trends in Soybean Oil are mixed.  Support is at 4970, 4330, and 4870 January, with resistance at 5210, 5280, and 5320 January.

PALM OIL AND CANOLA

General Comments: Palm Oil futures were a little higher last week despite fears of increasing production and weakening demand.  Futures were lower today.  There are still Indonesian plans to increase the use of Palm Oil in biofuels blends.  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 higher and moved back into the heart of the recent trading range on the daily charts.  Trends are still mixed on the daily charts but up on the weekly charts.

Chart Analysis: Trends in Canola are mixed.  Support is at 635.00, 632.00, and 623.00 January, with resistance at 661.00, 671.00, and 680.00 January.  Trends in Palm Oil are down.  Support is at 4010, 3940, and 3880 February, with resistance at 4200, 4270, and 4300 February.

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