WHEAT
General Comments: Wheat closed a little lower last week on swelling tied in part to a stronger US Dollar and in part in anticipation of a potentially bearish USDA report on Tuesday. Futures made new highs for the move before working lower. Trends are still up in all three markets. The weekly export sales report was a little stronger last week and near the high end of trade expectations. Ideas that the US will have good demand for Wheat as the rest of the northern hemisphere is short production this year. Offer volumes are down from both Russia and Europe. Dry weather in southern Russia as well as the northern US Great Plains and Canadian Prairies remains a supportive feature in the market although the weather has become old news. The Russian weather has been good for production in northern and western areas and has recently improved in southern areas and into Kazakhstan in time for the next crop. Siberian Spring Wheat conditions have been very good. Europe is expecting top yields in some areas but less yield in others and parts of eastern Europe and northern Russia are expecting strong yields. European quality is a problem due to too much rain in some areas and not enough in others.
Overnight News: The southern Great Plains should get some showers over the middle of the week. Temperatures should average near to above normal. Northern areas should see some showers over the middle of the week. Temperatures will average near to above normal. The Canadian Prairies should see mostly dry conditions but showers are possible over the middle of the week. Temperatures should average above normal.
Chart Analysis: Trends in Chicago are mixed. Support is at 763, 745, and 744 December, with resistance at 790, 798, and 807 December. Trends in Kansas City are mixed. Support is at 772, 768, and 748 December, with resistance at 804, 814, and 818 December. Trends in Minneapolis are mixed. Support is at 1006, 984, and 980 December, and resistance is at 1034, 1060, and 1086 December.

Photo by Denes Kozma on Unsplash

RICE
General Comments: Rice was higher on Friday in recovery trading as the recent demand woes are considered to be factored into the price for now. Futures closed slightly higher for the week and short term trends have turned mixed on the charts. Weekly chart trends are sideways but imply futures could test resistance at the 1400 area basis the nearest futures contract in the near term. There was little in the way of news for participants to react to but the weekly export sales report showed weaker demand. Ideas are that demand is not yet strong enough to take up the supply available to the market. The crop has been largely harvested in all states. Yield reports and quality reports have been acceptable to many in Texas and are called good in Louisiana. The reports have been good in both Arkansas and Mississippi. Milling yields have been generally low in both states.
Overnight News: The Delta should get showers late this week. Temperatures should be near to above normal.
Chart Analysis: Trends are down with no objectives. Support is at 1331, 1301, and 1284 January and resistance is at 1368, 1372, and 1378 January.

CORN AND OATS
General Comments: Corn closed lower and Oats both closed higher. It was a correction trade for the Corn. The export sales report was strong last week and the sales pace is currently at or just above the USDA target pace. Corn has relatively tight supplies as farmers are harvesting and not selling. Oats were higher on a lack of supply available to the market from the northern US Great Plains and the Canadian Prairies while Corn is still finding some support from strong ethanol demand. Trends are up on the daily charts for Oats and weekly charts for both markets. Near term trends are down for Corn. Demand will be an increasing feature in the trade moving forward as the harvest moves to completion sometime this month. Initial yield reports have been mixed but good. Most of the elevators along the Mississippi are exporting again which is good news for nearby demand. 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.
Overnight News: Colombia bought 150,000 tons of US Corn.
Chart Analysis: Trends in Corn are mixed to down with objectives of 544 December. Support is at 548, 540, and 533 December, and resistance is at 569, 573, and 582 December. Trends in Oats are up mixed to with objectives of 792 December. Support is at 728, 723, and 708 December, and resistance is at 775, 780, and 786 December.

SOYBEANS
General Comments: Soybeans and the products closed lower last week on what appeared to be widespread speculative selling as wire reports indicated that the Brazil Soybean basis was now showing overall prices less than US values to places like China. Soybeans trends are starting to turn down on the daily charts. Harvest has moved well past the half way point for Soybeans and a harvest low might be seen during the second half of the harvest. Reports indicate that farmers are limited sellers at best. Gulf port elevators are coming on line and export sales and exports are increasing. Planting and initial crop development is going very well in Brazil. It has been dry in Argentina but rain has been falling this week and conditions for planting and initial growth are improving.
Overnight News:
Chart Analysis: Trends in Soybeans are mixed to down with objectives of 1177 January. Support is at 1195, 1180, and 1168 January, and resistance is at 1227, 1243, and 1261 January. Trends in Soybean Meal are mixed. Support is at 328.00, 323.00, and 320.00 December and resistance is at 341.00 344.00, and 347.00 December. Trends in Soybean Oil are down with objectives of 5680 December. Support is at 5850, 5830, and 5810 December, with resistance at 6050, 6160, and 6240 December.

CANOLA AND PALM OIL
General Comments: Palm Oil was lower last week as Soybean Oil moved lower and caused demand concerns for Palm Oil. It was lower today in anticipation of a bearish stocks report from MPOB. Futures are still caught in a trading range. Support still comes from ideas that supply and demand are in balance or supplies are short. The weekly chart trends are up. There are ideas of tight supplies due to labor problems. There are just not enough workers in the fields due to Coronavirus restrictions. Production has also been down to more than offset the export losses so prices have trended higher. Canola closed lower and could have topped out for now as the harvest is starting to wind down. Some of the selling was noted in sympathy with Chicago. Farmers are bullish and reluctant to sell because of the sharp reduction in Canola production in Canada this year. The weekly chart trends are up.
Overnight News:
Chart Analysis: Trends in Canola are mixed Support is at 961.00, 949.00, and 938.00 January, with resistance at 984.00, 983.00, and 1002.00 January. Trends in Palm Oil are mixed. Support is at 4850, 4740, and 4630 January, with resistance at 5090, 5220, and 5680 January.