Grains Report - Wednesday, April 21

The US does not have a lot of Soybeans in the country anymore as most producers have already sold. Buyers are scrambling for what is left. Brazil is rapidly exporting Soybeans. The Brazil harvest had been delayed due to late planting dates early due to dry weather and now too much rain that has caused harvest delays and some quality problems in the north as well. Harvest activities are done now. China has been buying for next year here but now is buying mostly in South America. US internal demand has been strong. Soybean Meal is under pressure due to the big buying seen in Soybean Oil although both were higher yesterday. Production of DDG can increase in the near future as ethanol demand improves and more people start driving again.

Overnight News:/

Chart Analysis: Trends in Soybeans are up with objectives of 1400 May. Support is at 1456, 1437, and 1431 May, and resistance is at 1496, 1508, and 1520 May. Trends in Soybean Meal are up with objectives of 424.00 and 431.00 May. Support is at 410.00, 402.00, and 395.00 May, and resistance is at 418.00, 424.00, and 433.00 May. Trends in Soybean Oil are up with objectives of 5900, 5920, and 6440 May. Support is at 5620, 5460, and 5340 May, with resistance at 5920, 5980, and 6040 May.

CANOLA AND PALM OIL

General Comments: Palm Oil was higher today on good demand. The private sources yesterday showed that export demand is running well ahead of last month so far this month. Ideas of tight supplies are still around but MPOB did show higher than expected ending stocks in its March data released last week. The production of Palm Oil is down in both Malaysia and Indonesia. Canola was higher on ideas of tight supplies combined with a drought in the Canadian Prairies. Canada has bought a couple of cargoes of Rapeseed from Ukraine and might buy more due to price spreads between the two producing countries. Worries about South American production are supporting both markets as is cold and dry weather in the Prairies. Demand is thought to be great with crush margins favoring a lot of production of vegetable oils to feed the demand. The demand for bio fuels is about to increase and is one reason to see much stronger Soybean Oil and Canola prices.

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