WHEAT

General Comments: Wheat markets were lower again yesterday on selling tied to ideas of weak demand and big Russian production that should help foster price weakness in the world market. Russia offered to Egypt yesterday at what were considered very low prices. The demand for US Wheat in international markets has been a disappointment all year and was 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 demand for US Wheat still needs to show up andthere is still not enough demand news to help support futures.

Overnight News: The southern Great Plains should get mostly dry conditions. Temperatures should average above normal.Northern areas should see isolated showers. Temperatures will average above normal.The Canadian Prairies should see mostly dry conditions. Temperatures should average above normal.

Chart Analysis: Trends in Chicago are down with objectives of 704 March,Support is at 721, 714, and 702 March, with resistance at 743, 758, and 766 March.Trends in Kansas City are down with objectives of 796 March.Support is at 803, 792, and 786 March, with resistance at 829, 831, and 849 March.Trends in Minneapolis are mixed to down with objectives of 887 and 859 March.Support is at 888, 882, and 876 March, and resistance is at 901, 915, and 938 March.

Photo by Steven Weeks on Unsplash

RICE  

General Comments: Rice was higher again and has completed the retracement from the lows set last week. The US Dollar was sharply lower and world petroleum prices were higher to help Rice rally.There is not much going on in the domestic market right now. Most Rice farmers were not paying much attention to the market.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 mixed.Support is at 1780, 1770, and 1750 March and resistance is at 1832, 1848, and 1852 March.

CORN AND OATS

General Comments: Corn closed mixed and Oats closed a little higher yesterday despite ideas of less demand and the potential for USDA to raise ending stocks estimates in the next WASDE reports that will be released tomorrow.Demand for US Corn remains muted even as forecasts for only light rains or dry conditions in southern Brazil and Argentina were seen.Brazil has been hanging on for its Summer crop but Argentina has suffered through some extreme drought.The Brazil Winter crop is harvested. 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.The improvement might take some time as the Chinese people get Covid, but they should be past this episode in a few weeks and demand might start to improve at that timeSouth American prices are currently close to or above than those in the US.

Overnight News: 

Chart Analysis: Trends in Corn are mixed.Support is at 647, 644, and 635 March, and resistance is at 660, 664, and 667 March.Trends in Oats are down with objectives of 312 March.Support is at 335, 330, and 328 March, and resistance is at 350, 354, and 363 March.

SOYBEANS

General Comments: Soybeans were a little lower yesterday on forecasts for a few showers to dot the landscape of southern Brazil and Argentina later this week.Traders were also getting ready for the USDA reports that will be released tomorrow.Soybean Meal closed lower and Soybean Oil was lower.Farmers are not selling many Soybeans in the US as many are waiting for a rally to sell into.Drier weather is the forecast for this week for southern Brazil and Argentina that could stress crops in both areas again. A few showers could appear about Thursday but ideas and forecasts suggest that the showers will be few and far between and not able to make a real dent in the droughtCentral 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.Even so, production of less than 150 million tons is possible now.Argentine production ideas continue to drop with the drought as planting is delayed and the crops already in the ground are stressed.Production estimates are starting to fall well below 50 million tons.There was news that China has started to ease Covid restrictions after some demonstrations by the Chinese people.Ideas that Chinese demand will improve, but this could take some time as a very large part of the population now has Covid.This has delayed a robust economic return for the country.Export demand for the US is improved from previous weeks and is on pace for what is needed to meet USDA projections.

Overnight News: Unknown destinations bought 124,000 tons of US Soybeans.

Chart Analysis: Trends in Soybeans are mixed.Support is at 1474, 1468, and 1465 March, and resistance is at 1502, 1514, and 1521 March.Trends in Soybean Meal are mixed to up with objectives of 479.00, 588.00, and 508.00 March. Support is at 457.00, 453.00, and 444.00 in March, and resistance is at 476.00, 479.00, and 481.00 March.Trends in Soybean Oil are mixed.Support is at 6210, 6150, and 6120 March, with resistance at 6450, 6520, and 6670 March.

CANOLA AND PALM OIL

General Comments:  Palm Oil closed lower today as demand ideas remain uncertain and as the production uncertainty continues.Indonesia will now permit exporters to sell six tons for every tons sold internally instead of eight as before. 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.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. There are still reports of too much rain in Malaysia. Canola was sharply lower on weakness in Chicago. 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 down with objectives of 842.00 and 822.00 March. Support is at 838.00, 833.00, and 810.00 March, with resistance at 852.00, 863.00, and 874.00 March.Trends in Palm Oil are mixed to down with objectives of 3870 and 3670 March. Support is at 43850, 3790, and 3750 March, with resistance at 4000, 4150, and 4270 March.

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