Grains Report - Wednesday, Dec. 21

General Comments: Wheat markets were mostly a little higher yesterday on forecasts for some extreme cold in US Wheat areas by the end of this week and as fighting escalates in Ukraine. The cold weather could produce some Winterkill in US production areas to make a small crop even smaller. Temperatures will be very cold and blizzard conditions are forecast due to high winds blowing the snow and probably the ground into the atmosphere. The demand for US Wheat in international markets has been a disappointment all year and currently is hindered by low prices and aggressive offers from Russia. Ukraine is also looking for new business for its crops and Russia is aggressive in the world market as it looks for cash to fund the war. The daily charts for the Chicago markets show mixed trends and demand fundamentals remain bearish. Minneapolis trends are mixed. The demand for US Wheat still needs to show up and there is still not enough demand news to help support futures.
Overnight News: The southern Great Plains should get scattered snow. Temperatures should average below normal. Northern areas should see scattered snow showers. Temperatures will average below normal. The Canadian Prairies should see scattered snow showers. Temperatures should average below normal.
Chart Analysis: Trends in Chicago are mixed. Support is at 738, 731, and 724 March, with resistance at 769, 782, and 799 March. Trends in Kansas City are mixed. Support is at 841, 829, and 822 March, with resistance at 860, 879, and 885 March. Trends in Minneapolis are mixed. Support is at 913, 901, and 894 March, and resistance is at 926, 935, and 957 March.

assorted food in sacks

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General Comments: Rice was sharply higher again yesterday and trends remain up on the daily charts and are also up on the weekly charts. The weekly export sales report showed just small net sales. There is not much going on in the domestic market right now. Most Rice farmers were not paying much attention to the market as they are involved in other pursuits such as hunting. Demand in general has been slow to moderate for Rice for both exports and domestic uses.
Overnight News: The Delta should get isolated showers. Temperatures should be near normal.
Chart Analysis: Trends are up with objectives of 850 January. Support is at 1760, 1752, and 1728 January and resistance is at 1785, 1797, and 1800 January.

General Comments: Corn and Oats closed higher yesterday along with the other markets. Demand for US Corn remains muted and forecasts for only light rains in southern Brazil and Argentina were seen instead of the bigger rains forecast the previous day. Brazil has been hanging on but Argentina has suffered through some extreme drought.. Corn prices are still hurt by a general lack of demand. Corn is still finding some support on a lack of farmer selling. Weak demand overall for US Corn remains a big problem for the market. There are increasing concerns about demand with the Chinese economic problems caused by the lockdowns creating the possibility of less demand as South America has much better crops this year to compete with the US for sales. China is now moving rapidly to open the economy and allow people to move around with no lockdowns so the demand could start to improve. South American prices are currently cheaper than those in the US.
Overnight News:
Chart Analysis: Trends in Corn are mixed. Support is at 644, 635, and 624 March, and resistance is at 656, 660, and 668 March. Trends in Oats are mixed to down with objectives of 323 and 312 March. Support is at 330, 328, and 326 March, and resistance is at 338, 345, and 347 March.

General Comments: Soybeans and the products were higher. Drier weather is no in the forecast this week for southern Brazil and Argentina that could really stress crops in both areas and central and northern Brazil remain in very good condition with scattered showers reported. 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. There was news that China has started to ease Covid restrictions after some demonstrations by the Chinese people. Ideas that Chinese demand will improve. Export demand for the US is improved. Domestic demand should be strong for Soybeans as the crush spreads are strong and provided crushers with a big profit margin for their crushing
Overnight News:
Chart Analysis: Trends in Soybeans are mixed Support is at 1475, 1460, and 1454 January, and resistance is at 1487, 1493, and 1512 January. Trends in Soybean Meal are mixed to down with objectives of 435.00 and 415.00 January. Support is at 446.00, 442.00, and 433.00 January, and resistance is at 457.00 465.00, and 474.00 January. Trends in Soybean Oil are up with objectives of 6730 January. Support is at 6470, 6400, and 6200 January, with resistance at 6700, 6710, and 6860 January.

General Comments: Palm Oil closed higher again yesterday on worries about supply as demand seemed to be mostly quiet. Ideas of better demand and less production are still around, with production falling due to seasonal factors. Hopes for improved demand from China were reported but export demand overall has improved lately, especially from India. China has tried to relax some Covid restrictions so that the economy can start to function again. However, new outbreaks of the virus are being reported and infection rates are rapidly increasing. Ideas are that supply and production will be strong, but demand ideas are now weakening and the market will continue to look to the private data for clues on demand and the direction of the futures market. Demand reports for the current month were stronger yesterday. Canola was higher along with Chicago and Malaysia. Ideas that Chinese demand can remain weak due to increased outbreaks of Covid there were negative. Demand for export has been less. Farmers are holding tight to harvested supplies. 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.
Overnight News:
Chart Analysis: Trends in Canola are mixed to down with objectives of 828.00 and 798.00 January. Support is at 844.00, 833.00, and 819.00 January, with resistance at 8573.00, 887.00, and 894.00 January. Trends in Palm Oil are mixed. Support is at 3850, 3790, and 3750 March, with resistance at 3990, 4020, and 4040 March.

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Softs Report - Tuesday, Dec. 20
Grains Report - Monday, Dec. 19
Softs Report - Friday, Dec. 16

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