WHEAT
General Comments: Wheat markets were lower again yesterday and prices in Chicago SRW traded to new lows. The problem remains demand as world supplies are not so large and US inventories are less as well. Ideas that big Russian offers and cheaper Russian prices would be a feature for a while in the world market was the driving force for the weaker prices, and price weakness could continue. The war in Ukraine continues, but Russia is expected to allow the grain export program to continue in one form or another. Ideas are that both Australia and Russia are harvesting record to near-record Wheat crops this year. Russia has a large production and is undercutting most world prices in the international market. The demand for US Wheat in international markets has been a disappointment all year and has been hindered by low prices and aggressive offers from Russia.
Overnight News: The southern Great Plains should get isolated showers. Temperatures should be variable. Northern areas should see scattered showers. Temperatures will average near to below normal. The Canadian Prairies should see isolated snow showers. Temperatures should average below normal.
Chart Analysis: Trends in Chicago are down with no obj3ectives, Support is at 7692, 680, and 668 May, with resistance at 721, 738, and 742 May. Trends in Kansas City are down with no objectives. Support is at 807, 800, and 794 May, with resistance at 837, 853, and 862 May. Trends in Minneapolis are down with no objectives. Support is at 863, 852, and 9840 March, and resistance is at 880, 887, and 892 May.

Photo by Melissa Askew on Unsplash

RICE
General Comments: Rice was a little lower yesterday in correction trading after the big mov higher on Monday. Reports indicate that the farmers have been selling and producers are also starting to get ready for planting in southern areas. Demand has been good from domestic sources. Export demand has been uneven. Demand has been an issue for the market all year. There is not much going on in the domestic market right now although mills are milling for the domestic market in Arkansas and are bidding for some Rice. Markets from Texas to Mississippi are called quiet. Demand in general has been slow to moderate for Rice for exports and solid for domestic uses.
Overnight News: The Delta should get mostly dry conditions. Temperatures should be below normal.
Chart Analysis: Trends are up with objectives of 1752 May. Support is at 1714, 1694, and 1689 May and resistance is at 1754, 1773, and 1779 May.

CORN AND OATS
General Comments: Corn closed lower yesterday on follow through selling in response to on ideas of weak demand. The export inspections report released Monday afternoon showed bad exports once again and the US is falling far behind the pace to meet USDA targets. US prices are currently very competitive with those from South America and US demand could improve because of the price differentials. Prices from South America should now remain strong as countries there concentrate on Soybeans exports, so the US has a chance now to see export demand improve. Brazil has been hanging on for its Summer crop although losses are now being reported. The situation is now more stable in southern Brazil and northern Argentina after recent rains, but the situation in central and southern Argentina remains stressed. Argentina has suffered through some extreme drought and losses could be large. The Brazil Winter crop is harvested and China has been buying the surplus. The Summer crop and the Argentine crop is developing under stressful conditions. The next Winter crop is going into the ground in good conditions, but it has been wet so the Soybeans harvest has been delayed and the Corn planting is becoming delayed as well. Reports indicate that the weather is now better in central and northern Brazil and that the Corn planting pace is much improved. However, Brazil sources say that 20% of the Winter crop could be planted outside of the ideal window so yields could be hurt in the end. There are 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 should start to improve
Overnight News:
Chart Analysis: Trends in Corn are down with no objectives. Support is at 628, 615, and 612 May, and resistance is at 637 645, and 648 May. Trends in Oats are down with objectives of 327 and 312 May. Support is at 333, 330, and 325 May, and resistance is at 342, 345, and 348 May.

SOYBEANS
General Comments: Soybeans and the products were lower on what appeared to be fund selling. Argentina is the world’s largest exporter of Soybeans products while the US and Brazil battle for supremacy in Soybeans exports. The South American harvest coming to export channels in the near future and the lack of exports for the US has hurt the price action and created down trends for Soybeans and sideways to down trends for the products. It remains hot and dry in Argentina and crop conditions are getting worse. Weather is becoming less important now as the harvest is already underway in central and northern Brazil and will spread south soon. Sothern Brazil and northern Argentina are getting enough rain to stabilize conditions and production losses but central and southern Argentina remain very dry. Central and northern Brazil have seen harvest operations interrupted with too much rain but the weather is now improving and the harvest pace is increasing. 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. Chinese demand is expected to improve in the world market and especially in Brazil with the country now open and many starting to move beyond Covid and create life and opportunity again.
Overnight News:
Chart Analysis: Trends in Soybeans are down with objectives of 1458 and 1408 May. Support is at 1476, 1472, and 1466 May, and resistance is at 1484, 1500, and 1520 May. Trends in Soybean Meal are down with objectives of 462.00 and 446.00 March. Support is at 465.00, 462.00, and 457.00 May, and resistance is at 472.00, 474.00, and 478.00 May. Trends in Soybean Oil are mixed. Support is at 5970, 5900, and 5870 May, with resistance at 6120, 63240, and 6380 May.

CANOLA AND PALM OIL
General Comments: Palm Oil closed higher today in response to Chinese PMI data that showed that the Chinese economy is recovering and implied that China could soon increase Palm Oil imports. China was a noted buyer of Palm Oil last week. Indonesia is now revoking some export permits to keep internal prices controlled and to support the bio fuels industry. The controls are expected to last through Ramadan. 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 but will start to decrease soon as most have now had Covid. Peninsular Malaysia is getting flooding rains. Canola was lower on demand concerns as ideas that Brazil will capture demand for the world market. Brazil is expected t dominate the oilseeds market for the next few months. 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. Support is at 816.00, 811.00, and 803.00 May, with resistance at 835.00, 836.00, and 848.00 May. Trends in Palm Oil are mixed. Support is at 4200, 4140, and 4090 May, with resistance at 4270, 4300, and 4340 May.

More By This Author:

Softs Report - Friday, Feb. 24
Grains Report - Thursday, Feb. 23
Softs Report - Thursday, Feb. 23