WHEAT

General Comments: Wheat markets closed lower yesterday as demand remains disappointing. Ideas had 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 or less against previous years. Offer volumes are down in Europe.  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 a few weeks ago 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.

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

Chart Analysis: Trends in Chicago are down with objectives of 751, 711, and 709 March. Support is at 751, 741, and 736 March, with resistance at 776, 793, and 808 March. Trends in Kansas City are down with objectives of777, 759, and 749 March. Support is at 779, 770, and 755 March, with resistance at 811, 829, and 850 March. Trends in Minneapolis are down with objectives of 946 and 871 March. Support is at 960, 952, and 945 March, and resistance is at 1001, 1012, and 10323 March.

Photo by James Baltz on Unsplash

RICE

General Comments: Rice was lower to start the new year of trading. Futures and cash market trading have been quiet for the holidays. Many producers are done harvesting and are hunting and not interested in selling. Mills have already purchased what they need for the holidays as will not show much interest in the market until the first part or 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 mixed to down with no objectives. Support is at 1450, 1435, and 1427 March and resistance is at 1479, 1488, and 1491 March.

CORN AND OATS

General Comments: Corn closed lower again yesterday and the short-term trends are turning down. A wetter weather pattern in southern Brazil was a reason for the selling. There was not been any demand news last week but demand has been good for ethanol and for export sales. Export shipments have been running behind. Support came from ideas that the overall fundamental picture for Corn is bullish as dry conditions continue in South America have been affecting summer Corn and Soybeans production. Some showers were reported in central Argentina but northern Argentina remains hot and dry. It is also hot and dry in Paraguay and into parts of southern Brazil. Corn has relatively tight supplies as farmers are mostly done harvesting and not selling, but ideas are that farmers are delivering enough to keep the market satisfied. Interior basis levels are reported to be strong. 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 but so far new crop futures have not been real strong.

Overnight News: 

Chart Analysis: Trends in Corn are mixed to down with objectives of 554 and 529 March. Support is at 576, 572, and 563 March, and resistance is at 603, 607, and 618 March.Trends in Oats are mixed.Support is at 675, 650, and 646 March, and resistance is at 709, 725, and 736 March.

SOYBEANS

General Comments: Soybeans and the products traded higher The rains mostly fell in central Argentina and then in Parana with RGDS farther south and also Paraguay and northern Argentina still mostly dry. The rains are timely and will help crops in these areas. The dry weather in southern Brazil and in Paraguay and Argentina had been helping to feed the rally..Planting and initial crop development is going very well in central and northern Brazil but it might be too wet for Soybeans in at least some of these areas as Soybeans do not like very wet soils.Reports indicate that some Corn has been lost and ideas are that Soybeans could become stressed if the dry weather continues in southern Brazil and northern Argentina.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 135 and 145 million tons of Soybeans this year due to the losses in the south.

Overnight News:  

Chart Analysis:  Trends in Soybeans are mixed. Support is at 1348, 1336, and 1320 March, and resistance is at 1368, 1384, and 1396 March.Trends in Soybean Meal are mixed. Support is at 402.00, 398.00, and 396.00 March, and resistance is at 415.00 418.00, and 421.00 March. Trends in Soybean Oil are mixed. Support is at 5560, 5510, and 5430 March, with resistance at 5630, 5780, and 5860 March.

CANOLA AND PALM OIL

General Comments: Palm Oil was higher yesterday and today as rains hit Malaysia over the weekend and caused floods and renewed production concerns.Traders are mostly worried about demand from 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.Canola was closed for a holiday.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 to up with objectives of 1040.00 and 1077.00 March. Support is at 1011.00, 996.00, and 979.00 March, with resistance at 1033.00, 1040.00, and 1046.00 March.Trends in Palm Oil are mixed to up with no objectives. Support is at 4700, 4650, and 4600 March, with resistance at 4900, 4990, and 5000 March.