WHEAT

General Comments: All three markets closed higher yesterday in response to the USDA reports that showed less than expected planting intentions by farmers.  USDA sid farmers intended to plant 43.350 million acres of all Wheat, down from trade expectations of 46.392 million acres and plantings last year of 46.079 million acres.  Dry outlooks for the Great Plains and Black Sea regions are still the main feature but rains in the forecast for the Great Plains from Nebraska to the north this weekend according to one model.  The other model has more general rains for all parts of the Great Plains.  The coverage of the new system does not look very impressive.  It is very dry in both areas although Kansas got a minimal amount of rain last week.  Growing conditions are dry around the world and in the US Great Plains and Winter Wheat crops are emerging from dormancy.  Overall demand has been weak so the lack of rain hurting production potential is about to be important.  The trade is also worried about the potential for tariffs to be imposed in early April and the counter tariffs that would come back to US agriculture. 

Chart Analysis:  Trends in Chicago are mixed.  Support is at 524, 518, and 512 May, with resistance at 553, 563, and 575 May.  Trends in Kansas City are mixed to down. Support is at 546, 542, and 536 May, with resistance at 583, 598, and 604 May. Trends in Minneapolis are down.  Support is at 576, 570, and 564 May, and resistance is at 600, 610, and 626 May.

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RICE

General Comments: Rice closed mixed yesterday, with the trade reacting to less than expected stocks but higher than expected intended area planted from USDA.  It estimated Rice planting intentions at 2.9 million acres, from trade expectations near 3.7 million and about unchanged from last year.  There was more concern about the tariffs scheduled to be imposed in early April.  Prices remain cheap, but could develop into a trading range, and could threaten the planted area as it will cost more to produce Rice than it is getting in the market right now.  Export sales have not been strong, and domestic demand is there but is not strong enough right now to bid prices any higher.  Milling quality of the Rice remains below industry standards and it takes more Rough Rice to create the grain for sale to stores and exporters.

Chart Analysis: Trends are mixed.  Support is at 1325, 1318 and 1306 May and resistance is at 1365, 1393, and 1416 May.

CORN AND OATS

General Comments: Corn closed mixed yesterday, with nearby prices a little higher and new crop prices unchanged to lower as traders reacted to USDA stocks in all positions report and planting intentions report.  USDA estimated stocks at 8.151 billion bushels, below average trade estimates, and planting intentions at 95.436 million acres, above average trade estimates.  There was renewed talk that tariffs could damage agricultural exports starting in early April when the reciprocal tariffs will be announced.  President Trump has announced that new tariffs are being imposed for all countries on a reciprocal basis starting in April.  The tariffs have become an off again on again feature of the government and no one knows what to do at this time.  It is dry in growing areas in western US, but most of the Midwest has had light precipitation lately.

Chart Analysis:  Trends in Corn are mixed.  Support is at 442, 434, and 433 May, and resistance is at 470, 477, and 484 May.  Trends in Oats are down.  Support is at 346, 342, and 333 May, and resistance is at 362, 365, and 377 May.

SOYBEANS

General Comments: Soybeans closed a little lower yesterday in response to the USDA stocks and planting intentions estimates.  USDA estimated the quarterly stocks at 1.910 billion bushels, a little above the trade estimates and above last year.  Planting intentions were estimated at 83.495 million acres, b3elow trade estimates and much below last year.  Futures had traded higher in the previous sessions in anticipation of the repot and were able to sell off when the report did not really show big surprises.  There was also increasing talk of new tariffs coming in early April and the damage they could do to US agriculture.  South American production looks strong although slightly less than previous estimates, with Brazil expected to produce 170 million tons and Argentina producing 49 million tons or a little less.  Consumer confidence is down and there are increasing worries that the US could be headed into a recession that could hurt domestic demand.  The Brazil Soybeans harvest is now estimated to be more than 80% complete.

Overnight News  Philippines bought 135,000 tons of US Soybean Meal.

Analysis:  Trends in Soybeans are mixed  Support is at 998, 990 and 980 May, and resistance is at 1041, 1051, and 1055 May.  Trends in Soybean Meal are mixed to down.  Support is at 290.00, 285.00, and 280.00 May, and resistance is at 297.00, 301.00, and 304.00 May.  Trends in Soybean Oil are mixed.  Support is at 4390, 4270, and 4220 May, with resistance at 4540, 4600, and 4700 May.

PALM OIL AND CANOLA

General Comments: Palm Oil futures were higher today on reports of better than expected export demand.  There is talk of reduced supplies in the market due to extreme weather that caused fields to flood among other things.  Demand has not been good so far this month and was weaker than expected for February.  Chart trends are mixed.  Canola was higher again yesterday and continued to move away from the extreme lows set when China imposed tariffs on Canola and products a couple of weeks ago.  The demand outlook is uncertain with the threat of US tariffs being imposed in early April.

Chart Analysis: Trends in Canola are mixed.  Support is at 600.00, 590.00, and 587.00 May, with resistance at 630.00, 640.00, and 652.00 May.  Trends in Palm Oil are up.  Support is at 4220, 4140, and 4070 June, with resistance at 4500, 4550, and 4600 June.

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