WHEAT        

General Comments: Winter Wheat markets were lower on speculative selling before the USDA reports today. World markets remained stable and there are more forecasts for rain and snow in the southern Great Plains. Rain and snow will be beneficial to crops in the region. Southern Russia has also gotten some rain and snow now as the crops there are dormant. The snow can help protect crops against Winterkill and the rain and snow can be used in the Spring to support initial growth..US prices remain very close to international prices and US markets have searched for new demand. Export demand has remained stable and moderate with the close price relationships. World prices have worked higher even with additional supplies available to the market as Russian prices remain elevated. Australian supplies have increased as its harvest is moving to completion.

Overnight News: The southern Great Plains should get isolated showers or dry conditions. Temperatures should be near normal. Northern areas should see scattered showers today and tomorrow, then mostly dry conditions. Temperatures will be above normal. The Canadian Prairies should see mostly dry conditions. Temperatures should average above normal.

Chart Analysis: Trends in Chicago are mixed. Support is at 628, 614, and 607 March, with resistance at 652, 660, and 664 March. Trends in Kansas City are mixed. Support is at 587, 573, and 563 March, with resistance at 603, 616, and 618 March. Trends in Minneapolis are mixed. Support is at 596, 590, and 583 March, and resistance is at 614, 620, and 626 March.

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RICE  

General Comments: Rice was a little lower before the USDA reports. Trading still reflects the lack of activity in the domestic cash market and the lack of activity is causing some volatility to enter. The market has turned to look for new demand and the spreads suggest that not much is out there. Trading volumes have been less for the last couple of weeks. The cash market is slow and the lack of business is reflected in futures volumes traded. Reports indicate that domestic demand has been poor to average with better consumer demand more than offset by much less demand from schools and other institutions.

Overnight News:  The Delta should get scattered showers this weekend. Temperatures should be below normal.

Chart Analysis: Trends are mixed. Support is at 1248, 1240, and 1230 March, with resistance at 1275, 1281, and 1293 March.

CORN AND OATS                    

General Comments:  Corn and Oats were a little lower amid worries about the dry weather in South America and the demand for the US crops. Trends are mixed in both markets. Export demand has held relatively strong as US Corn is about the cheapest feed grain in the world market. Domestic demand has been less due to reduced demand for ethanol processing and questions about feed demand. It has rained in central and northern Brazil in the last week. Southern Brazil and Argentina got some very beneficial rain over the weekend. Drought could develop in Brazil and Argentina as the overall weather patterns have been dry and as dry weather is in the forecast for Argentina and southern Brazil. The drought is especially serious in South America for the first Corn crop but the second crop could also be affected due to late planting in central and northern Brazil. Dry weather has delayed the Soybeans planting and that will delay the second Corn planting later. Argentina has removed its export ban on Corn.

Overnight News:   

Chart Analysis:  Trends in Corn are mixed. Support is at 480, 473, and 467 March, and resistance is at 500, 502, and 505 March. Trends in Oats are mixed. Support is at 350, 347, and 339 March, and resistance is at 363, 370, and 373 March.

SOYBEANS AND PRODUCTS 

General Comments: Soybeans and Soybean Oil closed lower and Soybean Meal was higher in trading before the USDA reports today. Demand remains a feature of the market as US ending stocks estimates are very tight and are likely to get even tighter as time goes on. China continues to buy each day and has appeared in the daily reporting system of USDA in the past week. Production potential is being threatened in South America due to the lack of rainfall. The situation is improved in central and northern Brazil but remains dire in southern Brazil and Argentina. Southern Brazil and Argentina got some very beneficial rain over the weekend and more is in the forecast for late this week. The world will need very strong production from South America to meet the projected demand. The stocks to use ration for Soybeans is now very small and the situation is the tightest projected in years.

Overnight News:   Unknown destinations bought 120,000 tons of US Soybeans. 

Chart Analysis: Trends in Soybeans are mixed to up with no objectives. Support is at 1354, 1342, and 1293 March, and resistance is at 1388, 1400, and 1412 March. Trends in Soybean Meal are mixed to up with objectives of 451.00 March. Support is at 441.00, 430.00, and 426.00 March, and resistance is at 447.00, 450.00, and 453.00 March. Trends in Soybean Oil are mixed to down with objectives of 4180 and 4020 March. Support is at 4220, 4180, and 4130 March, with resistance at 4420, 4430, and 4470 March.

CANOLA AND PALM OIL        

General Comments:  Palm Oil closed lower on ideas that the weak export pace shown so far by SGS can continue this month. 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 as plantations in both countries are having trouble getting workers into the fields. Ethanol demand has been moderate. Canola was higher. Production problems for Soybeans in South America helped Soybean Oil. Very strong Palm Oil prices have made buying Soybean and Canola oils the better option. Trends are up in Soybean Oil and in Canola. Demand for Canola has improved in recent weeks and farm selling has been less.

Overnight News:

Chart Analysis: Trends in Canola are up with no objectives. Support is at 664.00, 660.00, and 646.00 March, with resistance at 673.00, 676.00, and 679.00 March. Trends in Palm Oil are mixed. Support is at 3630, 3560, and 3500 March, with resistance at 3840, 3890, and 3910 March.