WHEAT
General Comments: Wheat markets closed higher again yesterday as speculative buying was reported. Futures were higher despite the lack of any new war action on Ukraine by either the US or Russia as the situation there remains stable but very tense. It remains dry in the western Great Plains but some precipitation is expected. 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. 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. Australian crop quality should be diminished. North Africa is very dry.
Overnight News: The southern Great Plains should get mostly dry conditions. Temperatures should average below normal. Northern areas should see mostly dry conditions. Temperatures will average below normal. The Canadian Prairies should see mostly dry conditions. Temperatures should average below normal.
Chart Analysis: Trends in Chicago are mixed. Support is at 756, 747 and 740 March, with resistance at 778, 794, and 798 March. Trends in Kansas City are mixed. Support is at 792, 784, and 773 March, with resistance at 811, 817, and 819 March. Trends in Minneapolis are mixed. Support is at 907, 897, and 895 March, and resistance is at 927, 930, and 945 March.

Photo by Sandy Ravaloniaina on Unsplash

RICE
General Comments: Rice closed higher. Trends have turned up on the daily charts as well as the weekly charts. It has been a demand led market recently and the weekly export sales report was very strong. The cash market is showing that domestic mill business is around everywhere. Many producers are not interested in selling but some are selling the current crop and generating some needed revenue. 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. Mills are showing more interest in the market as previously bought supplies start to run low. The cash market is reported to be relatively strong in moderately active trading as prices have held firm. Ideas are that there is very little Rice left in producer control.
Overnight News: The Delta should get mostly dry conditions. Temperatures should be below normal.
Chart Analysis: Trends are up with objectives of 1578 and 1640 March. Support is at 1523, 1500, and 1482 March and resistance is at 1560, 1572, and 1584 March.

CORN AND OATS
General Comments: Corn closed higher along with Soybeans as both markets reacted to the South American weather. Some big rains were reported in Paraguay, but these rains missed agricultural areas. The agricultural areas got an inch or less of precipitation and are now turning hot and dry again. The same news was reported for Argentina and southern Brazil. Crop losses are becoming more and more of a reality for the Corn market right now. The Soybeans harvest farther north is being somewhat delayed due to wet weather and this might affect planting of the Safrinha crop in Brazil. Planted area there as well as in the US is in question due to the high costs and the lack of availability of inputs for growing a successful crop.
Overnight News:
Chart Analysis: Trends in Corn are mixed to down. Support is at 625, 623, and 614 March, and resistance is at 642, 648, and 654 March. Trends in Oats are mixed to up with objectives of 742 and 794 March. Support is at 715, 694, and 677 March, and resistance is at 739, 748, and 771 March.

SOYBEANS
General Comments: Soybeans and the products were higher as the South American weather remained difficult. Some big rains were reported in Paraguay, but these rains missed agricultural areas. The agricultural areas got an inch or less of precipitation and are now turning hot and dry again. The same news was reported for Argentina and southern Brazil. Crop losses are becoming more and more of a reality for the Soybeans market right now. Analysts said last week that Brazil production could be between 125 and 129 million tons but further cuts are possible. The data released by the state ag services in Brazil implies total Brazil production at 125 million tons to 127 million tons according to at least some analysts here in the US. Production ideas at the beginning of the crop season were closer to 150 million tons for Brazil so the cuts are drastic and imply much more demand for US Soybeans down the road. It was also very hot and dry in Argentina until recently and crop losses are reported there. Southern Brazil, Paraguay, and much of Argentina weather forecasts call for hot and dry conditions to develop again until at least the middle of the month. Trends are up on the daily and weekly charts.
Overnight News: China bought 132,000 tons of US Soybeans and unknown destinations bought 332,000 tons of US Soybeans.
Chart Analysis: Trends in Soybeans are up with objectives of 1614 March. Support is at 1560, 1526, and 1497 March, and resistance is at 1590, 1602, and 1614 March. Trends in Soybean Meal are up with objectives of 461.00 and 477.00 March. Support is at 445.00, 431.00, and 420.00 March, and resistance is at 456.00 462.00, and 468.00 March. Trends in Soybean Oil are mixed. Support is at 6370, 6300, and 6180 March, with resistance at 6740, 6860, and 6980 March.

CANOLA AND PALM OIL
General Comments: Palm Oil was lower yesterday as Indonesia moved some Palm Oil into the export market. Demand in Malaysia could improve soon as Indonesia is expected to keep most Palm Oil at home. Indonesia is once again making moves to cut the availability of Palm Oil for export as it seeks to keep more at home for bio fuels purposes. There are still poor production conditions in Malaysia and Indonesia. 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. Production conditions have been very poor and workers are not often in the fields. Canola was a little lower in range trading. Support came from the rally in Chicago and the sharp reduction in Canola production in Canada this year. Chart trends are mixed.
Overnight News:
Chart Analysis: Trends in Canola are mixed. Support is at 1005.00, 998.00, and 983.00 March, with resistance at 1033.00, 1038.00, and 1040.00 March. Trends in Palm Oil are mixed. Support is at 5440, 5380, and 5290 April, with resistance at 5740, 5800, and 5920 April.