WHEAT
General Comments: All three markets closed higher last week, but near the lows of the week with dry outlooks for the Great Plains and Black Sea region the main feature but with rains reported in Kansas one day last week and more in the forecast for the Great Plains in about a week. The amounts and coverage of the new system does not look real impressive at this time. It is very dry in both areas and Kansas reported 0.3 inch or less. There are now fears that the US is entering a recession caused almost completely by the economic uncertainty of the policies of the Trump administration and consumer confidence is down. Growing conditions are dry around the world and in the US Great Plains and Winter Wheat crops are emerging from dormancy. Overall demand has been weak so the lack of rain hurting production potential is about to be important.
Overnight News:
Chart Analysis: Trends in Chicago are mixed. Support is at 545, 530, and 524 May, with resistance at 575, 579, and 585 May. Trends in Kansas City are mixed to up. Support is at 582, 577, and 566 May, with resistance at 619, 625, and 642 May. Trends in Minneapolis are mixed. Support is at 585, 576, and 570 May, and resistance is at 626, 633, and 645 May.

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RICE
General Comments: Rice closed a little higher on Friday, but a little lower for the week and made new lows for the move after a failed attempt to move higher. Mexico has escaped tariffs for now and so it will not apply its own and this was a big relief to the Rice market. Prices remain cheap, but could develop into a trading range, and could threaten the planted area as it will cost more to produce Rice than it is getting in the market right now. Export sales have not been strong, and domestic demand is there but is not strong enough right now to bid prices any higher. Milling quality of the Rice remains below industry standards and it takes more Rough Rice to create the grain for sale to stores and exporters.
Overnight News:
Chart Analysis: Trends are mixed to down. Support is at 1296, 1284 and 1272 May and resistance is at 1393, 1416, and 1427 May.

CORN AND OATS
General Comments: Corn closed higher last week in response to another strong week of export sales and on reports of strong ethanol demand. The export demand in recent weeks has been very strong and ideas are that domestic demand has been stronger as well. President Trump has announced that new tariffs are being imposed for all countries on a reciprocal basis starting in April. The tariffs have become an off again on again feature of the government and no one knows what to do at this time. It is dry in growing areas in western US, but most of the Midwest has had precipitation lately. Mostly dry weather is likely this week. Traders expect USDA to estimate planting intentions at near 94 million acres this season. Oats were higher.
Overnight News:
Chart Analysis: Trends in Corn are mixed. Support is at 462, 455, and 442 May, and resistance is at 477, 484, and 492 May. Trends in Oats are up. Support is at 371, 364, and 359 May, and resistance is at 385, 389, and 396 May.

SOYBEANS
General Comments: Soybeans and the products closed higher last week, and Soybean Meal was the weakest link as basis levels remained firm in Brazil due to big Chinese buying there in recent weeks and as Soybean Oil has had the better demand. South American production looks strong although slightly less than previous estimates, with Brazil expected to produce 170 million tons and Argentina producing 49 million tons or a little less. Futures are weaker in response to the big crops hitting the market from Brazil and as the tariffs were imposed on our largest customers on the export front this week. The tariffs have caused retaliation from our buyers, especially China, and could hurt demand from China and Canada. Consumer confidence is down and there are increasing worries that the US could be headed into a recession that could hurt domestic demand. The fundamentals remain mixed as cash markets have turned stronger in South America and hot and dry weather has returned to central and northern parts of
Brazil. The Soybeans harvest there is estimated to be more than 75% done.
Overnight News
Analysis: Trends in Soybeans are mixed to down Support is at 990, 980 and 955 May, and resistance is at 1021, 1041, and 1051 May. Trends in Soybean Meal are mixed to down. Support is at 291.00, 285.00, and 280.00 May, and resistance is at 310.00, 315.00, and 319.00 May. Trends in Soybean Oil are down. Support is at 4110, 4080, and 3990 May, with resistance at 4290, 4450, and 4460 May.

PALM OIL AND CANOLA
General Comments: Palm Oil futures were lower last week on what appeared to be speculative long liquidation tied to reports of weaker demand. Ideas of weaker export demand pushed futures lower today. There is talk of reduced supplies in the market due to extreme weather that caused fields to flood among other things. Demand has not been good so far this month and was weaker than expected for February. Chart trends are mixed. Canola was higher last week after a short covering and new buying rally that came after futures set extreme lows the previous week. The selling is still in response to news that China has imposed prohibitive tariffs on Canola and the products. The demand outlook is uncertain with the threat of US tariffs being imposed the previous week but was able to partially recover the losses last week.
Overnight News:
Chart Analysis: Trends in Canola are mixed. Support is at 557.00, 552.00, and 546.00 May, with resistance at 590.00, 600.00, and 615.00 May. Trends in Palm Oil are up. Support is at 4320, 4220, and 4140 June, with resistance at 4500, 4550, and 4610 June.

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