Image Source: Unsplash
 

Wheat

General Comments: Wheat markets were higher last week in all three markets on the potential for damage from the cold weather seen a week ago and as world prices remain stable. Some support came from the bombings in the Red Sea that have interrupted commerce. The advent of very cold weather in the central US promoted ideas of limited Winterkill for Winter Wheat markets and very dry conditions in the northern Great Plains and Canadian Prairies now are keeping production ideas for next year in check. It is warmer in these regions now. There was snow cover to protect many of the crops so little if any damage is expected. It is turning warmer week this week. Black Sea offers are still plentiful and Russian prices appear to be fading. Ukraine said that it is having trouble with shipping as much of the Wheat is shipped through the Red Sea due to the Houthi bombing of ships there. EU countries are offering. Demand has been poor for US Wheat as Russia's production looks strong.
Overnight News: The southern Great Plains should get mostly dry conditions. Temperatures should be much below normal. Northern areas should see mostly dry conditions. Temperatures will average much below normal. The Canadian Prairies should see mostly dry conditions. Temperatures should average much below normal.
Chart Analysis: Trends in Chicago are mixed. Support is at 591, 585, and 577 March, with resistance at 622, 630, and 640 March. Trends in Kansas City are mixed. Support is at 611, 601, and 587 March, with resistance at 647, 655, and 670 March. Trends in Minneapolis are mixed. Support is at 692, 674, and 668 March, and resistance is at 713, 730, and 729 March.
 

Rice

General Comments: Rice closed higher last week and closed on a strong note. Futures made it above 1800 March for part of the day before falling back to close a little below that level. The charts show that futures have broken out of the trading range. The weekly export sales report showed poor demand in response to the rally. Warmer and wetter weather is expected this week in the Delta and Texas.
Overnight News:
Chart Analysis: Trends are mixed to up with objectives of 1820 March. Support is at 1774, 1769, and 1756 March and resistance is at 1806, 1814, and 1820 March.
 

Corn And Oats

General Comments: Corn closed a little higher last week in choppy trading. USDA reported weaker export sales again and weather forecasts for Argentina are improving. On the other hand, more rain is forecast for central and northern Brazil and the Soybeans' harvest could be delayed and that could mean less Corn planted area Soybean quality could be reduced as well. Oats were lower in range trading. The market anticipates increased selling from US producers, but many have sold enough, and elevators and processors are reported to be full. There are also forecasts for a lot of very cold air for the Midwest to keep farmers inside and not opening the bins. Producers are also looking for higher prices now as crops are in the bin for the Winter. Ideas of weak demand are keeping prices low. The market feels that there is more than enough Corn for any demand.
Overnight News:
Chart Analysis: Trends in Corn are mixed to up with objectives of 464 and 478 March. Support is at 445, 437, and 435 March, and resistance is at 452, 456, and 462 March. Trends in Oats are mixed. Support is at 361, 350, and 338 March, and resistance is at 376, 385, and 393 March.
 

Soybeans

General Comments: Soybeans and the products were mixed last week, with Soybeans and Soybean Meal lower and Soybean Oil little changed. Prices were mostly lower on Friday on improved Argentine weather forecasts. Rains are now in the forecast instead of hot and dry weather developing for a longer term stay. Such rains would be beneficial for reproducing Corn and Soybeans. The precipitation keeps falling in Brazil and is expected to continue through this week. The rains could be detrimental to the quality of Soybeans and the planting dates for Winter Corn. Soybean Meal remains weak on increasing confidence that Argentina will return as a major exporter and as US crushers are crushing for oil and have a lot of extra meal available. Support also came from reports of reduced Brazil production. The trade remains concerned about the weather forecasts for South America but is holding to ideas of production of over 150 million tons. However, there are more estimates that production is below 150 million tons and in some cases much below that level as yield reports from Mato Grosso have been poor and less than expected by analysts. Wire reports indicate that Chinese hog herds have been cut significantly and much less Soybean Meal demand is expected from that sector. Soybeans imports requirements could be 20% less as a result. China continues to source more Soybeans from Brazil than the US.
Overnight News:
Chart Analysis: Trends in Soybeans are mixed. Support is at 1201, 1192, and 1180 March, and resistance is at 1225, 1246, and 1251 March. Trends in Soybean Meal are mixed to down with objectives of 335.00 and 313.00 March. Support is at 347.00, 344.00, and 341.00 March, and resistance is at 361.00, 366.00, and 370.00 March. Trends in Soybean Oil are mixed. Support is at 4610, 4570, a6nd 4520 March, with resistance at 4790, 4800, and 4900 March.

Canola And Palm Oil

General Comments: Palm Oil was higher last week with ideas of better demand and ideas of smaller production in Malaysia. China has been a noted buyer recently. Trends are turning up on the daily charts and on the weekly charts as futures are once again testing important resistance areas on the weekly charts. Canola was lower on forecasts for better rains in Argentina and improving weather in Brazil. Current forecasts call for generally improved growing conditions in Brazil this week. The Canola crop is harvested, and it is in bins, so it will take some price movement to get new farm sales. Trends are mixed on the daily and weekly charts in this market.
Overnight News:
Chart Analysis: Trends in Canola are mixed. Support is at 614.00, 610.00, and 604.00 March, with resistance at 640.00, 646.00, and 656.00 March. Trends in Palm Oil are up with objectives of 4220 April. Support is at 3970, 3830, and 3790 April, with resistance at 4050, 4070, and 4130 April.

More By This Author: