WHEAT

General Comments: Wheat closed little changed in Chicago and a little lower in KC last week on some speculative long liquidation and despite positive weekly export sales.  USDA is still issuing old reports but those reports have been positive.  World prices turned weaker last week.  The FAO raised world production estimates this week.  Sovecon now estimates Russian production at 88.6 million tons, up 800,000 tons, due to better yields in Siberia and other areas, but still weak data in the south.  Southern hemisphere crops appear to be good.

Chart Analysis: Trends in Chicago are mixed to up.  Support is at 524, 517, and 507 December, with resistance at 555, 560, and 573 December.  Trends in Kansas City are down.  Support is at 506, 501, and 494 December, with resistance at 524, 534, and 540 December. Trends in Minneapolis are not available.

Image Source: Unsplash

RICE

General Comments: Rice was higher last week after making new lows for the move on what appeared to be speculative trading.  Ideas are that the market is too cheap and that farmers have sold what needs to be sold for now.  The recent selling has been to be relentless and appears tied to the weaker prices in Asia and especially India.  Trends are down in the market.  The harvest is over in the delta and Mid South.  California is about done with its harvest.  Yields and quality are mixed, but quality appears better than a year ago.  The cash market has been slow with low bids from buyers in domestic markets and average or less export demand.

Chart Analysis: Trends are mixed to down.  Support is at 1000, 988, and 976 January and resistance is at 1056, 1068, and 1074 January.

CORN AND OATS

General Comments: Corn was lower and closed near the lows of the week on speculative selling tied to long liquidation and despite the weekly sales report showing strong export demand.  Ideas are that demand is less now due to increased competition in the world market.  Trends are turning down in the market.  The harvest is winding down in all areas of the Midwest.  There are ideas that US production might not be super strong due to disease such as rust to offset the demand losses.  Temperatures should average near to above normal this week and there are forecasts for some rain early this week.  Oats were a little lower.

Chart Analysis:  Trends in Corn are mixed.  Support is at 422, 419, and 413 December, and resistance is at 433, 439, and 442 December.  Trends in Oats are mixed.  Support is at 294, 288, and 282 December, and resistance is at 316, 324, and 338 December.

SOYBEANS

General Comments: Soybeans were a little higher and the products were lower last week on what appeared to be speculative long liquidation that hit the markets later in the week.  The early week rally came on reports of strong Chinese buying, but that buying seemed to dry up on Thursday and Friday.  The US will have to compete with South America for sales in a diminishing Chinese market.  The Chinese hog herd is being reduced and this means less demand for Soybeans and Soybean Meal.  Forecasts call for light precipitation to be seen in the Midwest.  Temperatures will average near to above normal this week.  Export demand remains less for US Soybeans as China has been taking almost all the export from South America due to the Trump tariff regime.

Overnight News: China bought 123,000 tons of US Soybeans.

Analysis:  Trends in Soybeans are mixed.  Support is at 1114, 1103, and 1071 January, and resistance is at 1148, 1169, and  1184 January.  Trends in Soybean Meal are mixed to down.  Support is at 311.00, 307.00, and 304.00 December, and resistance is at 325.00, 331.00, and 337.00 December.  Trends in Soybean Oil are mixed.  Support is at 4900, 4830, and 4760 December, with resistance at 5170, 5280, and 5390 December.

PALM OIL AND CANOLA

General Comments: Palm Oil futures were lower last week in sympathy with the price action in Chicago and on fears of increasing production and weakening demand.  Futures were lower again today for the same reasons.  There are still Indonesian plans to increase the use of Palm Oil in biofuels blends.  There are still ideas of increasing production.  The market sentiment overall is turning bearish on ideas of increasing stocks to the market and on some concerns about demand Canola was lower.  Trends are mixed on the daily charts.

Chart Analysis: Trends in Canola are mixed.  Support is at 635.00, 632.00, and 623.00 January, with resistance at 661.00, 671.00, and 680.00 January.  Trends in Palm Oil are down.  Support is at 4010, 3940, and 3880 February, with resistance at 4200, 4270, and 4300 February.

More By This Author: