WHEAT

General Comments: Wheat markets closed lower as the export inspections remained on the weaker side. Ideas have been that the US will have good demand for Wheat as the rest of the northern hemisphere is short production this year but so far demand has been average against previous years. Offer volumes are down in Europe although there has been talk of increased offers from Russia.  Dry weather in southern Russia as well as the US Great Plains and Canadian Prairies caused a lot less production. The lack of production has reduced the offers and Russia has announced sales quotas for next year. Russia has already increased export taxes to control the flow of export Wheat out of the country and announced last week that a quota of 8 million tons per month would be put on Wheat exports for the foreseeable future. Australia has had too much rain and the crop quality should be diminished, but conditions are drier now and the harvest is moving ahead.

Overnight News: The southern Great Plains should get mostly dry conditions or isolated showers. Temperatures should average above normal. Northern areas should see isolated to scattered showers. Temperatures will average above normal. The Canadian Prairies should see some scattered showers. Temperatures should average below normal.

Chart Analysis: Trends in Chicago are mixed to up with objectives of 824 and 869 March. Support is at 795, 788, and 779 March, with resistance at 824, 845, and 847 March. Trends in Kansas City are mixed to up with objectives of 884 March. Support is at 830, 814, and 807 March, with resistance at 871, 885, and 892 March. Trends in Minneapolis are mixed. Support is at 10020, 1009, and 1001 March, and resistance is at 1037, 1047, and 1056 March.

Photo by Towfiqu barbhuiya on Unsplash

RICE:

General Comments: Rice was higher again yesterday as speculators bought again. Futures have now moved lower for the last several weeks after making new highs for the move. Futures and cash market trading have gone quiet for the holidays. Many producers are done harvesting and are hunting and not interested in selling at a time that is traditionally the cheapest prices of the year. Mills have already purchased what they need for the holidays as will not show much interest in the market until the first part of the middle of next month. The cash market is reported to be relatively strong as prices have held firm despite the quiet activity.

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

Chart Analysis: Trends are up with objectives of 1457 January. Support is at 1410, 1400, and 1394 January and resistance is at 1444, 1451, and 1464 January.

CORN AND OATS:

General Comments: Corn closed higher again yesterday and chart trends are up. Support came from ideas that the overall fundamental picture for Corn is bullish as dry conditions continue in South America affecting summer Corn and Soybeans production. Corn has relatively tight supplies as farmers are mostly done harvesting and not selling. Demand has been strong for exports and very strong for Ethanol consumption. Demand will be an increasing feature in the trade moving forward and the strong weekly export sales report was important for the market moving forward. Demand has been good so far this season but a lot of the Chinese business has gone to Ukraine this Fall. That is expected to change over the Winter as Ukraine exportable supplies start to run low. It could change further is Russia invades Ukraine in the future. Interior basis levels are reported to be strong due to strong 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: 

Chart Analysis: Trends in Corn are up with objectives of 622 and 647 March. Support is at 607, 596, and 590 March, and resistance is at 616, 622, and 628 March. Trends in Oats are mixed. Support is at 701, 690, and 686 March, and resistance is at 736, 739, and 748 March.

SOYBEANS

General Comments: Soybeans and both of the products closed higher again yesterday and the trends are up on the daily and weekly charts. The dry weather in southern Brazil and in Argentina is helping to feed the rally..Planting and initial crop development is going very well in central and northern Brazil but it has turned dry in southern Brazil and in parts of Argentina. Drier weather is returning to these areas after some showers in the last week and a dry bias is expected going forward.It is a La Nina year and that implies drier than normal weather in southern Brazil and northern Argentina. Reports indicate that some Corn has been lost and ideas are that Soybeans could become stressed if the dry weather returns.Brazil could have soybeans ready for export by the end of February and the crop potential is up to 150 million tons although many are now starting to drop production outlooks due to the hot and dry weather.Ideas are now that Brazil can produce between 142 and 145 million tons of Soybeans this year due to the losses in the south.

Overnight News:  

Chart Analysis:  Trends in Soybeans are up with no objectives.Support is at 1334, 1317, and 1304 January, and resistance is at 1370, 1384, and 1400 January.Trends in Soybean Meal are up with no objectives. Support is at 402.00, 396.00, and 384.00 January, and resistance is at 418.00 424.00, and 430.00 January.Trends in Soybean Oil are up with objectives of 6070 and 6550 January.Support is at 5590, 5520, and 5420 January, with resistance at 5780, 5800, and 57830 January.

CANOLA AND PALM OIL

General Comments: Palm Oil was lower today in range trading. India has lowered its import taxes on Palm Oil this week. Traders are mostly worried about India who has been buying Soybean Oil in the US instead of Palm Oil from Malaysia and Indonesia and is also worried about China and its demand for Palm Oil for bio fuels.Support still comes from ideas that supply and demand are in balance or supplies are short.There are ideas of tight supplies due to labor problems.There are just not enough workers in the fields due to Coronavirus restrictions.There have also been reports of flooding in Malaysian palm fields.Production has also been down to more than offset the export losses so prices have trended higher.Canola was closed for a holiday.Nearby months were lower on some speculative selling late last week.Farmers are bullish and reluctant to sell because of the sharp reduction in Canola production in Canada this year.The buy side thinks that Canola is fully priced but the farmers are still holding out for more. 

Overnight News:

Chart Analysis: Trends in Canola are mixed. Support is at 1000.00, 992.00, and 976.00 January, with resistance at 1025.00, 1031.00, and 1038.00 January.Trends in Palm Oil are mixedSupport is at 4420, 4300, and 4220 March, with resistance at 4530, 4580, and 4730 March.