WHEAT 

General Comments: Wheat markets closed lower last week as demand remains disappointing. Ideas had been that the US will have good demand for Wheat as the rest of the northern hemisphere is short production this year but so far demand has been average or less against previous years.  Futures have been moving lower since late November because of the poor export demand and might find a bottom soon.  Offer volumes are down in Europe.  Dry weather in southern Russia as well as the US Great Plains and Canadian Prairies caused a lot less production.  The lack of production has reduced the offers and Russia has announced sales quotas for next year.  Russia has already increased export taxes to control the flow of export Wheat out of the country and announced a few weeks ago that a quota of 8 million tons per month would be put on Wheat exports for the foreseeable future.  Australia has had too much rain and the crop quality should be diminished.

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

Chart Analysis:  Trends in Chicago are mixed to down with objectives of 711 and 709 March.  Support is at 736, 714, and 697 March, with resistance at 771, 776, and 783 March.  Trends in Kansas City are down with objectives of  749 and 729 March.  Support is at 755, 751, and 747 March, with resistance at 783, 787, and 793 March.  Trends in Minneapolis are down with objectives of 871 March.  Support is at 906, 901, and 888 March, and resistance is at 948, 965, and 977 March.

Photo by James Baltz on Unsplash

RICE

General Comments: Rice was a little higher on Friday in consolidation trading.  Trends are starting to turn up again on the daily charts.  Futures and cash market trading have been quiet until now and the cash market is still quiet.  Many producers are done harvesting and are hunting and not interested in selling.  Mills have already purchased what they need for the holidays as will not show much interest in the market until the first part or the middle of next month.  The cash market is reported to be relatively strong as prices have held firm despite the quiet activity.

Overnight News:  The Delta should get scattered showers. Temperatures should be near to above normal.

Chart Analysis:  Trends are mixed.  Support is at 1450, 1443, and 1435 March and resistance is at 1488, 1491, and 1500 March.

CORN AND OATS

General Comments: Corn closed slightly higher on Friday and the short term trends are sideways but are turning up to go along with the longer term trends in the market.  Support came from ideas that the overall fundamental picture for Corn is bullish as dry conditions continue in South America have been affecting summer Corn and Soybeans production.  However, showers are now predicted for southern Brazil and the situation there should become more stable.  Some showers were reported in central Argentina but northern Argentina remains hot and dry.  Most of Argentina will stay hot and dry while Brazil gets its showers.  It is also hot and dry in Paraguay and into parts of southern Brazil.  Corn has relatively tight supplies as farmers are mostly done harvesting and not selling, but ideas are that farmers are delivering enough to keep the market satisfied.  Interior basis levels are reported to be strong.  There are a lot of ideas that production and planted and harvested area will be significantly less next year due to the lack of fertilizers available and the cost of production but so far new crop futures have not been strong.

Overnight News:  Mexico bought 132,000 tons of US Corn.

Chart Analysis: Trends in Corn are mixed.  Support is at 596, 592, and 585 March, and resistance is at 611, 618, and 622 March.  Trends in Oats are mixed to down with objectives of 660 and 640 March.  Support is at 650, 646, and 633 March, and resistance is at 674, 680, and 694 March.

SOYBEANS 

General Comments: Soybeans and the products closed sharply higher on Friday and higher for the week as the South American weather situation remains a mixed bag   The rains over the week mostly fell in central Argentina and then in Parana with RGDS farther south and also Paraguay and northern Argentina still mostly dry.  Showers are now in the forecast for southern Brazil. The rains are timely and will help crops in these areas.  The dry weather in southern Brazil and in Paraguay and Argentina had been helping to feed the rally and the forecasts took prices lower at times last week.  Planting and initial crop development is going very well in central and northern Brazil but it might be too wet for Soybeans in at least some of these areas as Soybeans do not like very wet soils.  Reports indicate that some Corn has been lost and ideas are that Soybeans could become stressed if the dry weather continues in southern Brazil and northern Argentina.  Brazil could have soybeans ready for export by the end of February and the crop potential is up to 150 million tons although many are now starting to drop production outlooks due to the hot and dry weather.  Ideas are now that Brazil can produce between 130 and 145 million tons of Soybeans this year due to the losses in the south.

Chart Analysis: Trends in Soybeans are mixed to up with objectives of 1414 and 1473 March.  Support is at 1368, 1355, and 1348 March, and resistance is at 1396, 1408, and 1420 March.  Trends in Soybean Meal are mixed to up with objectives of 432.00 and 449.00 March.   Support is at 406.00, 402.00, and 398.00 March, and resistance is at 415.00 418.00, and 421.00 March.  Trends in Soybean Oil are up with objectives of 5980 and 6200 March.  Support is at 5830, 5760, and 5690 March, with resistance at 5860, 5980, and 6040 March.

CANOLA AND PALM OIL 

General Comments: Palm Oil was higher last week as rains hit Malaysia over the weekend and caused floods and renewed production concerns.  It was higher today on the MPOB data showing smaller than expected stocks levels.  Traders are mostly worried about demand from India who has been buying Soybean Oil in the US instead of Palm Oil from Malaysia and Indonesia and is also worried about China and its demand for Palm Oil for bio fuels.  Canola was a little higher in range trading and with the Chicago price action.  Farmers are bullish and reluctant to sell because of the sharp reduction in Canola production in Canada this year.  The buy side thinks that Canola is fully priced but the farmers are still holding out for more.

Chart Analysis:  Trends in Canola are mixed to u[p with objectives of 432.00 and 449.00 March.  Support is at 1027.00, 1012.00, and 996.00 March, with resistance at 1040.00, 1048.00, and 1054.00 March.  Trends in Palm Oil are up with no objectives.  Support is at 4900, 4860, and 4800 March, with resistance at 5050, 5120, and 5180 March.