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WHEAT
General Comments: Wheat markets were higher yesterday as negotiations with Russia to extend the grain corridor deal with Ukraine are just now getting started. Reports say that Russian offers continue to hit the world market and world prices. USDA made no changes to the US supply or demand but did cut world ending stocks levels. The funds maintain a huge short position in this market. The problem remains demand as world supplies are not so large and US inventories are less as well. Ideas that big Russian offers and cheaper Russian prices would be a feature for a while in the world market was the driving force for the weaker prices, and price weakness could continue. The war in Ukraine continues, but Russia is expected to allow the grain export program to continue in one form or another. Ideas are that both Australia and Russia are harvesting record to near record Wheat crops this year. Russia has a large production and is undercutting most world prices in the international market. The demand for US Wheat in international markets has been a disappointment all year and has been hindered by low prices and aggressive offers from Russia.
Overnight News: The southern Great Plains should get isolated showers. Temperatures should be near to below normal. Northern areas should see mostly dry conditions. Temperatures will average below normal. The Canadian Prairies should see isolated snow showers. Temperatures should average below normal.
Chart Analysis: Trends in Chicago are mixed to down with no objectives. Support is at 661, 656, and 650 May, with resistance at 702, 709, and 722 May. Trends in Kansas City are mixed. Support is at 773, 770, and 764 May, with resistance at 815, 832, and 837 May. Trends in Minneapolis are mixed. Support is at 814, 808, and 802 March, and resistance is at 853, 860, and 869 May.

RICE
General Comments: Rice was narrowly sharply higher yesterday and trends have turned up on the charts. The USDA WASDE reports showed reduced export demand but this was already factored into the price structure as the selling had come before the release of the reports. Demand has been good from domestic sources. Export demand has been uneven but was a marketing year high in the most recent weekly export sales report. Demand has been an issue for the market all year. There is not much going on in the domestic market right now although mills are milling for the domestic market in Arkansas and are bidding for some Rice. Markets from Texas to Mississippi are called quiet. Demand in general has been slow to moderate for Rice for exports. Planting is active in Texas and southern Louisiana.
Overnight News: The Delta should get isolated showers. Temperatures should be below normal.
Chart Analysis: Trends are mixed to up with objectives of 16867 and 1718 May. Support is at 1665, 1625, and 1620 May and resistance is at 1694, 1714, and 1724.

CORN AND OATS
General Comments: Corn closed lower yesterday after trading both sides of unchanged. Oats were higher. US prices are currently very competitive with those from South America and US demand could improve because of the price differentials. Prices from South America should now remain strong as countries there concentrate on Soybeans exports, so the US has a chance now to see export demand improve. The Brazil Winter crop is harvested and China has been buying the surplus. The Summer crop and the Argentine crop is developing under stressful conditions. The next Winter crop is going into the ground in good conditions, but it has been wet so the Soybeans harvest has been delayed and the Corn planting is becoming delayed as well. Reports indicate that the weather is now better in central and northern Brazil and that the Corn planting pace is improved. However, Brazil sources say that 20% of the Winter crop could be planted outside of the ideal window so yields could be hurt in the end. NOAA is forecasting that La Nina will develop this Summer and replace El Nino. US growing conditions are usually good when this happens.
Overnight News: China bought 612,000 tons of US Corn.
Chart Analysis: Trends in Corn are down with objectives of 593 May. Support is at 606, 603, and 600 May, and resistance is at 622, 630, and 634 May. Trends in Oats are up with no objectives. Support is at 342, 338, and 333 May, and resistance is at 353, 358, and 361 May.

SOYBEANS
General Comments: Soybeans were lower yesterday as the Brazil harvest makes it way to the market. Reports from Brazil show that basis levels there are under pressure due to the large crop being harvested now. Forecasts from NOAA for very good growing conditions in the Midwest were also a factor. Argentine production was cut but Brazil production was not and the Brazil crop is coming to export channels and that is bearish to US prices. Soybeans export demand is flowing to Brazil now. Argentina is the world’s largest exporter of Soybeans products while the US and Brazil battle for supremacy in Soybeans exports. The South American harvest coming to export channels now. It remains hot and dry in Argentina and crop conditions are getting worse. Production ideas there are still dropping and the Rosario exchange now estimates production near 27 million tons. Weather is becoming less important now as the harvest is already underway in central and northern Brazil and will spread south soon. Central and northern Brazil have seen harvest operations interrupted with too much rain but the weather is now improving and the harvest pace is increasing. Production potential for the Brazil is called very strong even with potential problems and losses in the south. Argentine production ideas continue to drop with the drought as planting is delayed and the crops already in the ground are stressed.
Overnight News:
Chart Analysis: Trends in Soybeans are down with objectives of 1458 and 1408 May. Support is at 1489, 1478, and 1476 May, and resistance is at 1516, 1538, and 1549 May. Trends in Soybean Meal are mixed. Support is at 476.00, 472.00, and 466.00 May, and resistance is at 490.00, 498.00, and 502.00 May. Trends in Soybean Oil are down with no objectives. Support is at 5510, 5390, and 5280 May, with resistance at 5740, 5820, and 5850 May.

CANOLA AND PALM OIL
General Comments: Palm Oil closed lower last week on demand concerns and despite ideas are that prices can remain elevated due to bad weather in Malaysia and the potential for increased demand from India and especially China. The market was lower today along with weakness in Chicago. Indonesia is now revoking some export permits to keep internal prices controlled and to support the bio fuels industry. The controls are expected to last through Ramadan. Peninsular Malaysia is getting flooding rains. Flash floods are being reported. Canola was lower on price action in Chicago and on demand concerns as ideas that Brazil will capture demand for the world market. Brazil is expected t dominate the oilseeds market for the next few months. Soybean and Palm Oil were lower as was European Rapeseed. Reports indicate that domestic demand has been strong due to favorable crush margins. Production was much improved this year on better weather during the Summer. It is dry in the southern and southwestern prairies now and this could mean reduced yields when the production season begins in a couple of months.
Overnight News:
Chart Analysis: Trends in Canola are down with no objectives. Support is at 764.00, 768.00, and 752.00 May, with resistance at 790.00, 803.00, and 817.00 May. Trends in Palm Oil are down with objectives of 3780 June. Support is at 3940, 3900, and 3880 June, with resistance at 4050, 4110, and 4170 June.

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