WHEAT

General Comments: Wheat closed lower yesterday on selling tied to the USDA reports.  USDA released its Winter Wheat seedings report that showed increased planted are for SRW and reduced White Winter Wheat seedings.  HRW seedings were unchanged from a year ago.  Ending stocks were also increased for the US and the world, so the report was considered bearish.  Ending stocks estimates and the quarterly stocks estimates were on the high side of expectations.  The daily charts still display the potential for significant bottoms, but the outside day down on the daily charts draws those ideas into question.

Chart Analysis: Trends in Chicago are mixed.  Support is at 500, 494, and 488 March, with resistance at 528, 530, and 536 March.  Trends in Kansas City are mixed.  Support is at 508, 503, and 499 March, with resistance at 536, 540, and 545 March. Trends in Minneapolis are not available.

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RICE

General Comments: Rice was a little higher yesterday in reaction to the USDA reports.  The market might have finished a bottom formation on the daily and weekly charts.  USDA cut its production estimate for All Rice but left Long Grain production higher than last month.  Domestic demand was increased and exports were cut for all classes.  Ending stocks were reduced.  The average farm price was increased for all Rice but left unchanged for Long Grain.  The report appears to be neutral to bullish for Rice prices.  The recent selling appears tied to the weaker prices in Asia and especially India.  Weaker world prices are expected by the FAO in the coming year.  Trends are mixed in the market.  Yields and quality in the US are mixed, but quality appears better than a year ago.  The cash market has been slow with low bids from buyers in domestic markets and average or less export demand.

Chart Analysis: Trends are mixed to up.  Support is at 1002, 996, and 975 March and resistance is at 1051, 1056, and 1065 March.

CORN AND OATS

General Comments:  Corn was sharply lower in response to the USDA reports.  USDA increased  production by raising harvested area and trimming yields  and increased ending stocks through the increased production and a smaller increase in demand.  The demand for export and for bio energy needs has held strong, but the export demand was cut back in the WASDE reports even ad feed demand remained untouched.  Traders had expected a cut to the feed demand.  Trends are down.  Temperatures should average near to above normal today and tomorrow, then near to below normal.  Oats were lower.

Chart Analysis:  Trends in Corn are down.  Support is at 420, 417, and 414 March, and resistance is at 426, 436, and 446 March.  Trends in Oats are mixed to down.  Support is at 284, 278, and 27\5 March, and resistance is at 317, 320, and 326 March.

SOYBEANS

General Comments: Soybeans and the products were lower yesterday in response to the USDA reports.  Production was increased as was domestic demand.  Export demand was cut back and ending stocks were increased.  Brazil production was increased.  It seems that the market is now more concerned about big supplies coming soon from South America with the Soybeans harvest there now underway.  US prices are currently too high to complete many new sales anywhere in the world market except Canada and Mexico.  Temperatures will average near to above normal in the Midwest today and tomorrow, then near to below normal the rest of this week.

Overnight News:  China bought 168,000 tons of US Soybeans and Mexico bought 152,404 tons of US Soybeaans.

Analysis:  Trends in Soybeans are mixed.  Support is at 1041, 1033, and 1030 March, and resistance is at 1071, 1082, and  1086 January.  Trends in Soybean Meal are mixed.  Support is at 295.00, 292.00, and 286.00 March, and resistance is at 307.00, 311.00, and 316.00 March.  Trends in Soybean Oil are mixed to up.  Support is at 4840, 4810, and 4750 March, with resistance at 5090, 5120, and 5200 March

PALM OIL AND CANOLA

General Comments: Palm Oil futures were slightly lower last week but closed higher today.  There are still ideas of increasing supplies available to the market along with weaker demand.  There are still ideas of increasing production.  Demand ideas are in a state of flux right now with some looking for weaker demand and other looking for improved demand. Canola was lower on the price action in Chicago.  There are ideas of a big Soybeans harvest coming from South America.

Chart Analysis: Trends in Canola are mixed.  Support is at 616.00, 600.00, and 590.00 March, with resistance at 638.00, 644.00, and 650.00 March.  Trends in Palm Oil are mixed.  Support is at 3880, 3820, and 3760 March, with resistance at 4130, 4160, and 4200 March.

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