WHEAT
General Comments: Wheat closed higher again yesterday in Winter Wheat markets and sharply lower in Minneapolis. There were reports of spreading with selling coming to Minneapolis and buying to the other two markets. There was no other reason for Minneapolis to work lower with higher prices elsewhere in the US and around the world. Ideas are that the US will have good demand for Wheat as the rest of the northern hemisphere is short production this year. Offer volumes are down from both Russia and Europe. Dry weather in southern Russia as well as the northern US Great Plains and Canadian Prairies remains a supportive feature in the market although the weather has become old news. The lack of production has reduced the offers and Russia plans to announce sales quotas for next year very soon. The Russian weather has been good for production in northern and western areas and has recently improved in southern areas and into Kazakhstan in time for the next crop. Siberian Spring Wheat conditions have been very good. Europe is expecting top yields in some areas but less yield in others and parts of eastern Europe and northern Russia are expecting strong yields. European quality is a problem due to too much rain in some areas and not enough in others.
Overnight News: The southern Great Plains should get mostly dry conditions. Temperatures should average near to above normal. Northern areas should see some showers over the middle of the week. Temperatures will average near to above normal. The Canadian Prairies should see scattered showers. Temperatures should average near normal.
Chart Analysis: Trends in Chicago are up with objectives of 860 December. Support is at 798, 780, and 773 December, with resistance at 830, 836, and 842 December. Trends in Kansas City are up with objectives of 865 December. Support is at 814, 802, and 796 December, with resistance at 848, 854, and 860 December. Trends in Minneapolis are mixed. Support is at 1013, 1005, and 984 December, and resistance is at 1048, 1066, and 1086 December.

Photo by Denes Kozma on Unsplash

RICE
General Comments: Rice was a little higher yesterday and the rally from the lows continues. Weekly chart trends are now threatening to turn up. Daily charts show up trends. The crop has been largely harvested in all states. Yield reports and quality reports have been acceptable to many in Texas and are called good in Louisiana. The reports have been good in both Arkansas and Mississippi. Milling yields have been generally low in both states. Export demand has been good but not great so far but is mostly for paddy. Mill demand has been about average so far.
Overnight News: The Delta should get showers late this week. Temperatures should be near to above normal.
Chart Analysis: Trends are up with objectives of 1446 January. Support is at 1400, 1394, and 1382 January and resistance is at 1424, 1428, and 1440 January.

CORN AND OATS
General Comments: Corn closed mixed, with nearby months a little lower on fears of decreasing ethanol demand. Crude Oil was lower and the EPA has threatened to make an announcement that it said no one will like in coming days about renewable fuels mandates. Corn has relatively tight supplies as farmers are harvesting and not selling. Demand will be an increasing feature in the trade moving forward as the harvest moves to completion sometime this month. Initial yield reports have been mixed but good. Most of the elevators along the Mississippi are exporting again which is good news for nearby demand. 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. Oats were lower for the first time in many weeks last week. It could be that the bull market is starting to run its course in this market.
Overnight News: Mexico bought 270,000 tons of US Corn.
Chart Analysis: Trends in Corn are mixed to up with objectives of 626 December. Support is at 566, 563, and 555 December, and resistance is at 582, 586, and 594 December. Trends in Oats are mixed. Support is at 707, 702, and 686 December, and resistance is at 753, 775, and 780 December.

SOYBEANS
General Comments: Soybeans closed higher and Soybean Meal closed sharply higher yesterday and trends in both markets are up. Soybean Oil closed lower and remains locked in a sideways trend. Harvest is starting to wrap up for Soybeans and a harvest low might have been hit this week. Reports indicate that farmers are limited sellers at best. Gulf port elevators are coming on line and export sales and exports are increasing. Planting and initial crop development is going very well in Brazil. It has been dry in Argentina but rain has been falling this week and conditions for planting and initial growth are improving.
Overnight News: Unknown destinations bought 161,000 tons of US Soybeans.
Chart Analysis: Trends in Soybeans are mixed. Support is at 1241, 1222, and 1208 January, and resistance is at 1261, 1266, and 1274 January. Trends in Soybean Meal are up with no objectives. Support is at 358.00, 355.00, and 3347.00 December, and resistance is at 376.00 381.00, and 388.00 December. Trends in Soybean Oil are mixed. Support is at 5750, 5700, and 5650 December, with resistance at 5860, 5990, and 61050 December.

CANOLA AND PALM OIL
General Comments: Palm Oil was a little higher Monday on ideas of weak production ahead and closed a little higher today in part on stronger Chicago Soybean Oil values. Futures are still caught in a trading range. Support still comes from ideas that supply and demand are in balance or supplies are short. The weekly chart trends are up. There are ideas of tight supplies due to labor problems. There are just not enough workers in the fields due to Coronavirus restrictions. Production has also been down to more than offset the export losses so prices have trended higher. Canola was lower, mostly in sympathy with Chicago Soybean Oil and the potential demand changes coming to renewable fuels. Farmers are bullish and reluctant to sell because of the sharp reduction in Canola production in Canada this year. The weekly chart trends are up.
Overnight News:
Chart Analysis: Trends in Canola are mixed to up with objective of 1010.00, 1048.00, and 1058.00 January Support is at 993.00, 979.00, and 961.00 January, with resistance at 1030.00, 1038.00, and 1044 .00 January. Trends in Palm Oil are mixed. Support is at 4700, 4650, and 4540 February, with resistance at 4800, 4920, and 4950 February.