WHEAT
General Comments: Wheat markets were higher on Friday and for the week last week in response news that Russia was launching a new offensive in Ukraine. Russia appears to be sending three divisions across the border to fight and it looks as though this could be a major operation for the Russian army. Fears of deliveries of Wheat from the Black Sea are surfacing again. USDA in its WASDE reports released on Wednesday made only minor changes to the demand data and ending stocks were increased by just one million bushels. Trends are turning up in all three markets on the daily and weekly charts. Ideas are that both Australia and Russia are harvesting record to near record Wheat crops this year. Russia is said to be plotting a huge new invasion of Ukraine that could prevent farmers in Ukraine from harvesting Wheat and planting Corn. Russia has a large production and is undercutting most world prices in the international market. However, Russian production estimates have dropped recently. 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. Ukraine is also looking for new business for its crops and Russia is aggressive in the world market as it looks for cash to fund the war.
Overnight News: The southern Great Plains should get scattered showers in the southeastern areas. Temperatures should average near to above normal. Northern areas should see mostly dry conditions. Temperatures will average above normal. The Canadian Prairies should see mostly dry conditions. Temperatures should average above normal.
Chart Analysis: Trends in Chicago are up with objectives of 802 and 834 March, Support is at 742, 757, and 742 March, with resistance at 792, 809, and 818 March. Trends in Kansas City are up with objectives of 910, 912, and 936 March. Support is at 888, 877, and 866 March, with resistance at 915, 925, and 946 March. Trends in Minneapolis are up with objectives of 933, 948, and 968 March. Support is at 912, 907, and 897 March, and resistance is at 935, 942, and 946 March.

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RICE
General Comments: Rice was higher last week in response to the USDA reports from Wednesday and the weekly export sales report that showed much improved sales on Thursday. The market had expected reductions in demand and increases in ending stocks. That is what they got, but not at levels big enough to keep the selling pressure on so the market rallied in a major way. 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 and although some Rice moved in Tein quiet trading at what were called very good prices. Demand in general has been slow to moderate for Rice for exports and solid for domestic uses.
Overnight News: The Delta should get mostly dry conditions. Temperatures should be below normal.
Chart Analysis: Trends are up with no objectives. Support is at 1800, 1776, and 1760 March and resistance is at 1810, 1825, and 1836 March.

CORN AND OATS
General Comments: Corn closed higher and Oats closed lower last week on another week of positive export sales as shown in the USDA reports released Thursday. On Wednesday, USDA cut Corn demand and added to ending stocks estimates that are now at 1.267 billion bushels. USDA cut ethanol demand and increased ending stocks for Corn by 25 million bushels. There had been fears of a cut to export demand and a larger increase in ending stocks estimates, but USDA chose to hold off on any export demand changes for now. Both markets remain in up trends established in early December although the short term trend is now sideways in Corn and down in Oats. The export demand was solid last week even though demand remains well behind the pace to make USDA objectives. Brazil has been hanging on for its Summer crop although losses are now being reported. Argentina has suffered through some extreme drought and losses could be large. The Brazil Winter crop is harvested and China is 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. There are concerns about demand with the Chinese economic problems caused by the lockdowns creating the possibility of less demand as South America has much better crops this year to compete with the US for sales. China is now moving rapidly to open the economy and allow people to move around with no lockdowns so the demand could start to improve
Overnight News:
Chart Analysis: Trends in Corn are mixed. Support is at 672, 669, and 666 March, and resistance is at 682, 686, and 689 March. Trends in Oats are mixed. Support is at 377, 372, and 363 March, and resistance is at 389, 392, and 399 March.

SOYBEANS
General Comments: Soybeans and the products were higher on Friday on South Americn weather. It remains hot and dry in Argentina and southern Brazil and crop conditions are getting worse. Central and northern Brazil have seen harvest operations interrupted with too much rain. Soybean Meal saw strong weekly export sales as Argentina is having to withdraw from the market for Soy products sales due to the drought in the country and the fact that they have already sold a lot of Soybeans into the world market. They are now buying from Brazil. USDA cut domestic demand and increased ending stocks on Wednesday which was a small surprise for the market. But it was not real bearish so the market embarked on a sell the rumor and buy the fact type of trade. USDA left Brazil production estimates unchanged but cut back on production estimates for Argentina. The pattern in southern Brazil and Argentina is dry again. The harvest in Brazil is slowly expanding in central and northern areas. These areas have seen too much rain and the harvest has been slow. Production potential for the Brazil is called very strong even with potential problems and losses in the south. Even so, production of less than 150 million tons is possible now although most estimates remain near 153 million tons. Argentine production ideas continue to drop with the drought as planting is delayed and the crops already in the ground are stressed. Production estimates are now closer to 435 million tons. Ideas that Chinese demand will improve, but this could take a few more weeks as a very large part of the population now has Covid. This has delayed a robust economic return for the country.
Overnight News:
Chart Analysis: Trends in Soybeans are mixed. Support is at 1528, 1511, and 1503 March, and resistance is at 1544 1548, and 1556 March. Trends in Soybean Meal are mixed to up with objectives of 568.00 March. Support is at 488.00, 478.00, and 472.00 March, and resistance is at 502.00, 505.00, and 508.00 March. Trends in Soybean Oil are mixed. Support is at 5890, 5840, and 5720 March, with resistance at 6150, 6240, and 6360 March.

CANOLA AND PALM OIL
General Comments: Palm Oil closed higher last week on mostly supply concerns although better demand is also expected. Futures were lower today. Export demand was less last month but could improve as the new controls in Indonesia are enacted. Current forecasts call for the rainy season to end soon and for fieldwork and harvest conditions to improve. 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. Ideas are that supply and production will be strong, but demand ideas are now weakening and the market will continue to look to the private data for clues on demand and the direction of the futures market. There are still reports of too much rain in Malaysia. Canola was a little higher last week in sympathy with the price action in Chicago and Malaysia. 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. Producers are holding on t crops right now as the prices rally and will wait for a top before selling again.
Overnight News:
Chart Analysis: Trends in Canola are mixed. Support is at 820.00, 815.00, and 799.00 March, with resistance at 837.00, 843.00, and 849.00 March. Trends in Palm Oil are mixed. Support is at 3950, 3890, and 3800 April, with resistance at 4040, 4130, and 4250 April.

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