Grains Report - Wednesday, March 20

WHEAT
General Comments: Wheat was higher again yesterday on reports of higher prices for Russian Wheat. Russia is the worlds largest exporter and sets the world price. It looks like the current prices have accounted for most or all of the bad news to hit Wheat futures. USDA made no changes to its balance sheets last week. Big world supplies and low world prices are still around. Export sales remain weak on competition from Rusia, Ukraine, and the EU as those countries look to export a lot of Wheat in the coming period. It is warm in the US and Canada this week. Black Sea offers are still plentiful.
Overnight News: The southern Great Plains should get mostly dry conditions. Temperatures should be above normal. Northern areas should see mostly dry conditions. Temperatures will average near normal. The Canadian Prairies should see mostly dry conditions. Temperatures should average near normal.
Chart Analysis: Trends in Chicago are mixed. Support is at 527, 524, and 518 May, with resistance at 556, 560, and 572 May. Trends in Kansas City are mixed to down with no objectives. Support is at 561, 552, and 546 May, with resistance at 594, 605, and 608 May. Trends in Minneapolis are mixed to down with no objectives. Support is at 641, 635, and 629 May, and resistance is at 660, 677, and 681 May.

selective focus photo of wreath

Photo by Evi Radauscher on Unsplash

RICE
General Comments: Rice closed a little lower again yesterday, and trends are still sideways in this market. Good demand for export continues. The overseas markets feature less production in Brazil and India, and it appears that the lack of offer from these markets is supporting increased demand for US Rice and prices here in the US. It has turned colder in the US this week and fieldwork will be much reduced.
Overnight News:
Chart Analysis: Trends are mixed to down with no objectives. Support is at 1759, 1731, and 1722 May and resistance is at 1785, 1803, and 1837 May.

CORN AND OATS
General Comments: Corn was higher and Oats closed lower, with Corn failing once again to take out the 440 May area on the charts. Demand for Corn has been strong at lower prices. The Dollar was higher yesterday and could be turning the short term trends up. Big supplies and reports of limited demand are still around, but futures have been very oversold. Futures are much lower than just a few months ago and a short covering rally is increasingly expected and might be under way. Funds remain very large shorts in the market. Basis levels have started to firm in the US as processors look for supplies amid tight farmer holding patterns. The weather forecasts for Argentina are improving with more showers and rains expected this week. More rain is forecast for central and northern Brazil The planting progress reports to date indicate rapid progress and reports from Brazil indicate that the Winter crop has been mostly planted now.
Overnight News:
Chart Analysis: Trends in Corn are mixed. Support is at 432, 429, and 422 May, and resistance is at 446, 448, and 459 May. Trends in Oats are mixed. Support is at 356, 349, and 344 May, and resistance is at 369, 374, and 376 May.

SOYBEANS
General Comments: Soybeans and Soybean Meal closed higher and Soybean Oil closed lower yesterday ideas of weak export demand and on reports of increased selling from Brazil producers as the weather in Brazil became dry in northern areas again and as world demand for Brazil beans remained high. Brazil producers were taking advantage on higher futures in the US and higher basis levels in Brazil. Reports of stronger basis levels and great export demand in Brazil provide some support. Report indicate that China has been a very active buyer of Brazil Soybeans this season. Ideas that South American production is taking demand from the US have pressured futures lower. Funds remain very large shorts in the market. Basis levels in the US are reported to be firming as processors look for supplies and farmers remain tight holders. Rains are in the forecast in Argentina. Such rains would be beneficial for reproducing Corn and Soybeans.
Overnight News: Unknown destinations bought 120,000 tons of US Soybeans.
Chart Analysis: Trends in Soybeans are mixed. Support is at 1175, 1165, and 1153 May, and resistance is at 1206, 1214, and 1233 May. Trends in Soybean Meal are mixed. Support is at 326.00, 329.00, and 307.00 May, and resistance is at 345.00, 348.00, and 352.00 May. Trends in Soybean Oil are mixed. Support is at 4780, 4690, and 4620 May, with resistance at 5000, 5050, and 5100 May.

CANOLA AND PALM OIL
General Comments: Palm Oil was higher today as the export pace is expected to continue to really improve. Domestic biofuels demand is also likely to improve. Ideas of weaker production ideas against good demand still support the market overall. The fundamentals of average demand against a weaker supply outlook are still around to keep prices supported. Trends are up on the daily charts. Canola was higher on a stronger US Dollar and Weaker Canadian Dollar. There are still forecasts for better rains in Argentina after a dry spell ends in a week or so and improving weather in Brazil. Current forecasts call for generally improved growing conditions in Brazil this week. The Canola crop is harvested, and it is in bins, so it will take some price movement to get new farm sales.
Overnight News:
Chart Analysis: Trends in Canola are mixed to up with objectives of 632.00 and 662.00 May. Support is at 610.00, 602.00, and 594.00 May, with resistance at 638.00, 644.00, and 653.00 May. Trends in Palm Oil are mixed to up with no objectives. Support is at 4200, 4120, and 4050 May, with resistance at 4300, 4330, and 4360 May.


More By This Author:

Softs Report - Tuesday, March 19
Grains Report - Monday, March 18
Softs Report - Thursday, March 14

Disclaimer: A Subsidiary of Price Holdings, Inc. – a Diversified Financial Services Firm. Member NIBA, NFA Past results are not necessarily indicative of future results. Investing in ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.