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Wheat

General Comments: Wheat markets were higher with Minneapolis higher as another blizzard is forecast for this week in Spring Wheat growing areas, and Chicago was lower on speculative selling tied as wire reports from Russia indicated that the country has a very big Wheat crop. They have been offered into the world market at relatively cheap prices. Hard Red Winter Wheat was higher on forecasts for some very light precipitation to fall in JHRW growing areas of the western Great Plains this week. The western US Great Plains remained too dry and crop conditions were very poor and the war continued in Ukraine with little if any ideas of a cease-fire mentioned. Ports are closed in Ukraine but Russian shippers and exporters are offering and some sales are being reported at Black Sea ports despite the high insurance costs associated with the boats coming into the sea. Ukraine can rail the exports to the EU for shipment but the amount that can be moved is very limited. 

Overnight News: The southern Great Plains should get isolated showers. Temperatures should average near to below normal. Northern areas should see isolated showers. Temperatures will average below normal. The Canadian Prairies should see isolated showers. Temperatures should average below normal.

Chart Analysis: Trends in Chicago are mixed. Support is at 1045, 1017, and 1014 May, with resistance at 1080, 1098, and 1135 May. Trends in Kansas City are mixed. Support is at 1129, 1106, and 1090 May, with resistance at 1167, 1200, and 1242 May. Trends in Minneapolis are mixed. Support is at 1144, 1128, and 1116 May, and resistance is at 1185, 1207, and 1222 May.
 

Rice                                        

General Comments: Rice was higher at the close after trading lower early in the day. The weekly export sales report showed increased sales from the previous week. Sales were moderate. The weekly crop condition report showed slow planting and emergence for the new crop. The overall rally is expected to start again very soon if it did not get started again yesterday. It looks like supplies are tight and demand is holding together in this market.  The cash market is showing that domestic mill business is around everywhere in light volumes. Producer sales are reported to have been way ahead of average early in the marketing year so stocks on hand in first hands are reported to be lower than normal. Growing conditions are considered good for crops right now although it has been a little cold.

Overnight News: The Delta should get scattered showers. Temperatures should be near to above normal.

Chart Analysis: Trends are mixed. Support is at 1600, 1569, and 1563 May and resistance is at 1655, 1670, and 1689 May.
 

Corn And Oats:

General Comments: Corn closed higher in response to cold and wet Midwestern weather and on-demand ideas.  The price strength for the nearby months as better demand for American Corn due to the loss of export potential from Ukraine went against the cheaper South American offers. Export sales were off in the weekly report but big sales were announced on Friday to China and Mexico. New crop futures spent the day higher on forecasts for cold and wet weather for the US Midwest.  The potential loss of Ukraine's exports of Corn makes the world situation tighter. The ports remain closed and Ukraine can rail out to the EU in limited amounts. China has a Covid outbreak again and has closed some cities and some ports in response. The moves are harsh but China has a no-tolerance policy regarding the pandemic. The closings of cities and ports will hurt the economy as people can’t make or spend money and hurt imports as there will be fewer places to unload cargoes. However, China has been a very big buyer of US Corn over the last couple of weeks as they need the feed and Ukraine cannot currently offer any supply. President Biden has said he will permit the use of higher ethanol blends in gasoline this Summer in an effort to control inflation and high fuel prices.

Chart Analysis: Trends in Corn are mixed. Support is at 785, 768, and 760 May, and resistance is at 820, 826, and 832 May. Trends in Oats are mixed. Support is at 705, 691, and 674 May, and resistance is at 724, 741, and 766 May.
 

Soybeans

General Comments: Soybeans and Soybean Meal were lower yesterday in correction trading despite the reduced production from South America and increasing concerns in the US about the cold and wet Midwest weather keeping farmers from the fields for planting. Traders are worried about demand moving forward as the ES Dollar is very strong and China is locking down due to Covid. Demand has been strong even with a slower export pace from the US with NOPA showing a higher crash rate. Soybean Oil has been the leader to the upside and was higher yesterday despite news that Indonesia will permit Crude Palm Oil exports but not exports of refined products.  The market had been told last week that all Palm Oil exports from Indonesia were banned. President Biden has said he will support the expanded use of biofuels this Summer in an effort to control higher fuel prices. More sanctions are now threatened for Russia due to what the world is seeing in Ukraine right now. There are still worries about Chinese demand because of Covid lockdowns there. China has not been mentioned as a Soybeans buyer in the daily sales reports from USDA for the last couple of weeks. China has been a major buyer of US Soybeans this year after a very slow start due to the problems in South America. They are buying for this year and already have booked a large number of new crops Soybeans to cover future needs. Ideas are that the Chinese economy could slow down due to the Covid lockdowns there and cause the country to purchase fewer Soybeans in the world market. 

Overnight News: China bought 232,000 tons of new crop US Soybeans and unknown destinations bought 133,000 tons of US Soybeans.

Chart Analysis: Trends in Soybeans are mixed. Support is at 1681, 1652, and 1646 May, and resistance is at 1728, 1757, and 1768 May. Trends in Soybean Meal are mixed. Support is at 4548.00, 447.00, and 436.00 May and resistance is at 459.00 465.00, and 473.00 May. Trends in Soybean Oil are up with objectives of 8550 May. Support is at 8020, 7990, and 7860 May, with resistance at 8480, 8600, and 8720 May.
 

Canola And Palm Oil

General Comments: Palm Oil was yesterday as the outside markets held firm. Hopes for better demand from India keep the market supported. A new Covid outbreak is reported in China and cities and infrastructure has been shut down, including some airports and water ports. The economy could slow down and affect demand. Production from Malaysia is expected to increase as well as the Covid lockdowns finally go away and as the weather is good for production.  Indonesia is once again making moves to cut the availability of Palm Oil for export as it manages high internal prices. Canola was lower along with Chicago and on word of the changes in the Indonesian Palm Oil export ban. It is reported to be very dry and has been cold for planting. There are ideas for reduced Sunflower export potential from Russia and Ukraine. The market is worried about South American production as well.  Canada produced a very short crop of Canola last year so supplies are tight. Trends have turned up again in this market.

Chart Analysis: Trends in Canola are up with objectives of 1226.00, 1259.00, and 1268.00 May. Support is at 1170.00, 1163.00, and 1153.00 May, with resistance at 1200.00, 1208.00, and 1220.00 May. Trends in Palm Oil are up with objectives of 6740 July. Support is at 6180, 6150, and 6020 July, with resistance at 6430, 6550, and 6600 July.