WHEAT

General Comments: Wheat markets were higher and gained back most if not all of the downside price action from the previous day. Chart trends are mostly mixed again. Traders had been selling due to less demand but the market held support and bounced hard. The threat of Winterkill production losses in the western Great Plains now appears to be part of the price. Temperatures dropped below 0F in many areas and that is cold enough to kill an unprotected crop. The actual damage will take some time to see under warmer temperatures and it might take until harvest to see the full effects of the recent extreme cold. However, it seems that the freeze is part of the price for now.

Overnight News: The southern Great Plains should get scattered to isolated showers. Temperatures should be on either side of normal. Northern areas should see mostly dry conditions. Temperatures will be near to above normal. The Canadian Prairies should see isolated showers or dry conditions. Temperatures should average above normal.

Chart Analysis: Trends in Chicago are mixed. Support is at 646, 642, and 637 May, with resistance at 672, 680, and 688 May. Trends in Kansas City are mixed to down with objectives of 622 and 601 May. Support is at 616, 608, and 600 May, with resistance at 640, 645, and 652 May. Trends in Minneapolis are mixed to down with objectives of 623 and 601 May. Support is at 628, 625, and 620 May, and resistance is at 650, 659, and 662 May.

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RICE  

General Comments: Rice was higher and tested recent resistance areas on the daily charts. Volumes traded were limited but the price action was strong. The cash market has not felt any increased demand lately and mill operations are reported to be on the slow side. Exports were moderate last week. Texas is about out of Rice, but there is Rice available in the other states, especially Arkansas. Asian and Mercosur markets were mixed to from last week.

Overnight News: The Delta should get isolated showers. Temperatures should be below normal.

Chart Analysis: Trends are mixed to up with objectives of 1345 and 1380 May. Support is at 1310, 1303, and 1296 May, with resistance at 1326, 1331, and 1335 May.

CORN AND OATS:  

General Comments: Corn closed higher and near the highs of the day and Oats were higher with Corn up a bit on South American weather. It has rained in central and parts of northern Brazil in the last week, but farmers were still able to harvest some of the Soybeans area and plant some of the Winter Corn around the precipitation. The Winter Corn crop is on a very slow pace to be planted and progress is well behind normal. Argentina is now drier and Corn in Argentina could be stressed. Southern Brazil got showers. The main crop harvest has started in parts of Brazil, but progress will be slow due to the late planting dates due too dry conditions earlier in the year. The second crop of Corn planting is also being delayed and yield estimates for South American Corn have been reduced. Demand for US Corn has been good.

Overnight News:

Chart Analysis: Trends in Corn are mixed. Support is at 530, 527, and 518 May, and resistance is at 551, 554, and 558 May. Trends in Oats are mixed to up with objectives of 386 and 412 May. Support is at 360, 355, and 351 May, and resistance is at 368, 373, and 376 May.

SOYBEANS 

General Comments: Soybeans and the products closed higher as the wet weather in northern Brazil has caused harvest delays and some quality problems. Soybeans are reported to be shattering in the region due to too much rain and arrivals at ports and silos have been very wet. Selling came on ideas that the impending Brazil harvest will kill current demand for US Soybeans. Demand was less last week in the weekly export data and was about the worst of the marketing year. The Brazil harvest has been delayed due to late planting dates early due to dry weather and now too much rain. Rains are coming to an end in some areas so harvest activities have increased but the harvest remains very slow overall and well behind normal. China has been buying for this year and next year here but also in South America. The strong demand for exports and for domestic use means there is little room for error and that the US could even come close to running out of Soybeans to sell.

Overnight News:  

Chart Analysis: Trends in Soybeans are mixed. Support is at 1378, 1368, and 1337 May, and resistance is at 1427, 1446, and 1450 May. Trends in Soybean Meal are mixed. Support is at 414.00, 405.00, and 395.00 May, and resistance is at 425.00, 434.00, and 442.00 May. Trends in Soybean Oil are mixed. Support is at 4850, 4800, and 4750 May, with resistance at 5100, 5160, and 5220 May.

CANOLA AND PALM OIL        

General Comments: Palm Oil closed lower on ideas of weaker demand coming up. The export news has been good with February exports holding to stronger levels than January. The concern is that the higher price with the higher tax would scare away would-be buyers. The production of Palm Oil is down in both Malaysia and Indonesia as plantations in both countries are having trouble getting workers into the fields. Wet weather has caused even more delays. Canola closed higher in follow-through recovery trading from the big move lower late last week.It appeared that speculators were trying to take some profits. The market has been very strong on demand against very limited supplies in the country.

Overnight News:

Chart Analysis: Trends in Canola are mixed. Support is at 735.00, 721.00, and 716.00 May, with resistance at 770.00, 783.00, and 789.00 May. Trends in Palm Oil are mixed to down with objectives of 3430 and 3180 May. Support is at 3600, 3560, and 3460 May, with resistance at 3670, 3700, and 3800 May.