WHEAT        

General Comments: Wheat markets were a little higher last week except for HRW futures that were lower and held to recent trading ranges on the weekly charts. The daily charts show a breakout higher and then a collapse back into the trading range. The late-week selling came in part in response to the weaker-than-expected export sales report on Thursday. Futures were higher on the threat of Winterkill in the western Great Plains. Temperatures dropped below 0F in many areas and that is cold enough to kill an unprotected crop. The actual damage will take some time to see under warmer temperatures and it might take until harvest to see the full effects of the recent extreme cold. However, it seems that the freeze is part of the price for now.

Overnight News: The southern Great Plains should get scattered to isolated showers. Temperatures should be near to below normal. Northern areas should see scattered to isolated showers. Temperatures will be near to below normal. The Canadian Prairies should see scattered showers. Temperatures should average near to below normal.

Chart Analysis: Trends in Chicago are mixed. Support is at 648, 642, and 637 May, with resistance at 672, 680, and 688 May. Trends in Kansas City are mixed. Support is at 626, 616, and 608 May, with resistance at 645, 652, and 664 May. Trends in Minneapolis are mixed. Support is at 635, 628, and 625 May, and resistance is at 650, 659, and 662 May.

RICE  

General Comments: Rice was lower last week. The export sales report was strong and featured sales to Japan and Venezuela. The cash market has not felt any increased demand lately and mill operations are reported to be on the slow side. Exports had been strong until recently and were moderate last week. Texas is about out of Rice, but there is Rice available in the other states. Asian and Mercosur markets were mixed to form last week but this has not yet affected the US world price that much.

Overnight News: The Delta should get isolated showers. Temperatures should be below normal.

Chart Analysis: Trends are mixed. Support is at 1296, 1290, and 1273 May, with resistance at 1315, 1326, and 1335 May.

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CORN AND OATS:  

General Comments: Corn closed a little higher and Oats were higher and made new weekly chart highs with Corn up a bit on South American weather. It has rained in central and parts of northern Brazil in the last week, but farmers were able to harvest some of the Soybeans area and plant some of the Winter Corn around the precipitation. Southern Brazil and Argentina are now drier and Corn in Argentina could be stressed. The main crop harvest has started in parts of Brazil, but progress will be slow due to the late planting dates due too dry conditions earlier in the year. The second crop of Corn planting is also being delayed and yield estimates for South American Corn have been reduced. Demand for US Corn has been good but export demand was very low last week.

Overnight News:

Chart Analysis: Trends in Corn are mixed. Support is at 540, 530, and 523 May, and resistance is at 551, 558, and 572 May. Trends in Oats are mixed to up with objectives of 386 and 412 May. Support is at 360, 355, and 351 May, and resistance is at 368, 373, and 376 May.

SOYBEANS 

General Comments: Soybeans closed higher and Soybean Meal closed a little lower. Selling came on ideas that the impending Brazil harvest will kill current demand for US Soybeans. Demand was less last week in the weekly export data and was about the worst of the marketing year. The Brazil harvest has been delayed due to late planting dates early due to dry weather and now too much rain that has caused harvest delays and some quality problems in the north as well. Rains are coming to an end in some areas so harvest activities have increased but the harvest remains very slow overall. China has been buying for this year and next year here but also in South America. The strong demand for exports and for domestic use means there is little room for error and that the US could even come close to running out of Soybeans to sell.

Overnight News:  

Chart Analysis: Trends in Soybeans are mixed. Support is at 1378, 1368, and 1337 May, and resistance is at 1410, 1446, and 1458 May. Trends in Soybean Meal are mixed. Support is at 414.00, 405.00, and 395.00 May, and resistance is at 425.00, 434.00, and 442.00 May. Trends in Soybean Oil are up with no objectives. Support is at 4860, 4800, and 4700 May, with resistance at 5100, 5160, and 5220 May.

CANOLA AND PALM OIL        

General Comments: Palm Oil closed higher on the back of stronger Soyoil futures. The export news has been good with February exports holding to stronger levels than January. The concern is that the higher price with the higher tax would scare away would be buyers. The production of Palm Oil is down in both Malaysia and Indonesia as plantations in both countries are having trouble getting workers into the fields. Wet weather has caused even more delays. Canola closed sharply lower on what was called follow-through selling and selling based on Chicago price action. It appeared that speculators were trying to take some profits. The market has been very strong on demand against very limited supplies in the country. Futures have rallied sharply in the last few weeks but are now giving back a part of the gains.

Overnight News:

Chart Analysis: Trends in Canola are mixed. Support is at 716.00, 703.00, and 692.00 May, with resistance at 752.00, 783.00, and 789.00 May. Trends in Palm Oil are up with objectives of 3810 May. Support is at 3700, 3630, and 3600 May, with resistance at 3800, 3830, and 3860 May.