Grains Report - Saturday, March 27

SOYBEANS
General Comments: Soybeans and Soybean Oil closed lower on weaker than expected export sales and the stronger US Dollar. Soybean Meal closed a little higher on spreads against Soybean Oil. Selling came on ideas that the ongoing Brazil harvest will kill current demand for US Soybeans. Demand was worse at just over 100,000 tons for Soybeans last week in the weekly export data but the US has now sold 99% of its target amount of Soybeans for the marketing year and really has very few Soybeans left to sell. The Brazil harvest had 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. Harvest activities have increased but the harvest remains very slow overall. China has been buying for this year and next year here but now mostly in South America. US internal demand has also been strong.
Overnight News:
Chart Analysis: Trends in Soybeans are mixed. Support is at 1390, 1374, and 1368 May, and resistance is at 1435, 1446, and 1460 May. Trends in Soybean Meal are mixed. Support is at 395.00, 385.00, and 370.00 May, and resistance is at 410.00, 415.00, and 418.00 May. Trends in Soybean Oil are mixed. Support is at 5410, 5330, and 5290 May, with resistance at 5650, 5820, and 5840 May.

CANOLA AND PALM OIL
General Comments: Palm Oil closed lower Friday on weakness in other oilseeds. Ideas of tight supplies are still around but supplies should start to seasonally increase. Futures were higher Friday on the solid export pace so far this month. 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. The weather is improved and trees seasonally increase production about now. Export demand has been less for the last couple of months. Canola was lower on what appeared to be speculative selling tied to price action in Chicago. Worries about South American production are supporting both markets but the weather is better now and both are looking for new triggers to promote more buying.
Overnight News:
Chart Analysis: Trends in Canola are mixed. Support is at 770.00, 765.00, and 746.00 May, with resistance at 796.00, 806.00, and 820.00 May. Trends in Palm Oil are mixed to down with objectives of 3580 June. Support is at 3760, 3630, and 3600 June, with resistance at 4010, 4060, and 4120 June.

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