Grains Report - Saturday, March 27

assorted food in sacks

General Comments: Rice was lower and gave back more than the gains of the previous day. Futures basically repeated the format of the last rally attempt only to fail the next day. The export sales report was strong but half of the previous volume. The cash market has not felt any increased export demand lately and mill operations are reported to be on the slow side. Texas is about out of Rice, but there is Rice available in the other states, especially Arkansas. Asian and Mercosur markets were steady to firm last week. New crop Rice is getting planted in Texas and planting is up to half done in Louisiana. Mississippi is about to start.
Overnight News: The Delta should get scattered showers on Sunday. Temperatures should be above normal.
Chart Analysis: Trends are mixed. Support is at 1300, 1290, and 1283 May, with resistance at 1345, 1350, and 1355 May.

General Comments: Corn closed lower Thursday but mostly in sympathy with the selloff in Soybeans and Wheat. Traders are still concerned that China might not buy more US Corn because the talks over the weekend between China and the US were not real positive. The country bought about 4.0 million tons of US Corn last week, but the weekly export sales report showed less sold to other destinations. Chinese demand had been strong until recently and it looks like they need the Corn. Prices inside China for Corn remain extremely high. It is still raining but is drier in central and parts of northern Brazil, and farmers are able to harvest much of the Soybeans area and plant much of the Winter Corn. The Winter Corn crop is on a very slow pace to be planted and progress is well behind normal. Argentina has seen a general rain in the last week and Corn in Argentina has stabilized after losing yield to dry conditions and crop stress. Southern Brazil is also in a better place on crop conditions. More rain is in the forecast for these areas in the next week. The main crop harvest has started in parts of Brazil, but progress will be slow due to the late planting dates due to dry conditions earlier in the year.
Overnight News:
Chart Analysis: Trends in Corn are mixed. Support is at 540, 531, and 529 May, and resistance is at 553, 559, and 568 May. Trends in Oats are mixed to up with objectives of 397 May. Support is at 369, 362 and 360 May, and resistance is at 384, 386, and 387 May.

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