Grains Report - Thursday, Dec. 17
CANOLA AND PALM OIL
General Comments: Palm Oil closed higher on the price action in Chicago and petroleum futures. The market was supported by ideas of tight supplies coming down the road. MPOB released its monthly supply and demand report last week and noted less production. Production of most vegetable oils in the world is less this year due to a lack of production of oilseeds. The production of Palm Oil is down in both Malaysia and Indonesia in part due to the difficulty of sourcing plantation workers due to the Coronavirus. Palm Oil prices are relatively high right now so importers are looking at importing Soybean Oil instead due to cost and quality. Canola was higher. Very strong Palm Oil prices have made buying Soybean and Canola oils the better option. Trends are up. Demand for Canola has improved in recent weeks and farm selling has been less as farmers have reduced supplies.
Overnight News:
Chart Analysis: Trends in Canola are mixed to up with objectives of 632.00 and 640.00 January. Support is at 599.00, 593.00, and 589.00 January, with resistance at 607.00, 610.00, and 613.00 January. Trends in Palm Oil are mixed to up with objectives of 3590 February. Support is at 3390, 3340, and 3300 February, with resistance at 3500, 3530, and 3560 February.
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